Lower Saxony at the limit: municipalities are struggling with record debt!

Lower Saxony at the limit: municipalities are struggling with record debt!

Lower Saxony is in the middle of a financial crisis – the famous “wallet crisis” is currently going around. According to the State Audit Office, the total debt burden in the state amounts to over 17 billion euros. For municipalities, this means that their financial leeway is becoming smaller day by day. The mayor of Braunschweig, Thorsten Kornblum (SPD), commented on this tense situation in an interview with NDR and made it clear that radical structural changes are necessary in order to bring about a real change.

“This is a perfect storm,” says Kornblum, who describes the current conditions as extremely challenging. Economic growth has stopped flourishing for three years, while social and construction costs are skyrocketing. Municipalities are faced with an ever-growing catalog of unfunded tasks that are required by law. This means that important investments in schools, roads and sewage systems have to be put off further and further.

Investments necessary despite debt burden

“We have to remain prepared to invest,” emphasizes Kornblum. This is easier said than done because financial resources are often lacking. But wealthy municipalities like Braunschweig are trying to liquidate their reserves in order to bridge short-term bottlenecks. The new municipal report sounds the alarm: It warns of a record deficit and describes the ongoing financial crisis that many municipalities in Lower Saxony are feeling. Places like Burgwedel, Verden and Moormerland are also affected.

But there are also glimmers of hope: the 500 billion European package for investments and the support of 600 million euros for daycare centers by the state government could improve the situation. Kornblum sees these measures as the first positive approaches to restoring the municipalities' ability to act.

Burden on democracy

The worsening financial situation not only leads to practical problems with infrastructure, but also puts a strain on the democracy and functionality of cities. Intact local politics is essential for the well-being of citizens. Kornblum therefore warns that the financing of municipalities is not just a question of politics, but also a social responsibility that must be taken seriously.

In total, there are more than 400 municipalities in Lower Saxony, all of which face similar challenges. Time is of the essence and changes must be tackled now so that the municipalities do not completely lose touch. Who knows, perhaps the coming months will show that the “perfect storm” also contains opportunities that need to be exploited.

For extensive information on the topic, interested readers can visit [NDR](https://www.ndr.de/nachrichten/niedersachsen/braunschweig_harz_goettingen/hoch-verschultete-kommunen-spielraeume- Werden-immer-smaller,kornblum-116.html), in addition there are reviews on mobility and accommodation, for example from SGCarmart, here. I also recommend checking out reviews of events at hotels like Homewood Suites, which are good for travelers looking for a comfortable place to stay.