Bottrop breathes a sigh of relief: 52 million euros in relief from the state!

Bottrop breathes a sigh of relief: 52 million euros in relief from the state!

Bottrop is looking to the future with hope because the city is participating in the new debt relief program of the state of North Rhine-Westphalia. This initiative aims to reduce city loans by 52 million euros, which represents significant financial relief for Bottrop. The city treasurer emphasizes that although this step is only a short-term solution, it is seen as an important step towards healthier finances. While Bottrop is faced with over 200 million euros in liquidity loans, the demand for additional support from the federal government is not far-fetched.

The implementation of this debt relief plan was unanimously decided by the city council. The basis for this measure is the Old Debt Relief Act NRW (ASEG), which enables the state to take over the old debts of the municipalities. In total, the state budget provides 250 million euros annually for the assumption of excessive cash loans. The financial situation of municipalities in 2024 was worse than ever before - with a record deficit of 24.8 billion euros in the core budgets. Bottrop also has an eleven percent shortfall in the city's budget, which further increases the urgency of these measures.

Long-term perspectives

Although the planned relief measures by the state government are initially viewed as positive, the treasurer is of the opinion that they can only be a first step. For sustainable financial stability, he calls for higher tax shares and a de-bureaucratization of administrative processes. It is particularly important to him to adhere to the principle of connectivity, which states that responsibilities must be clearly defined when financial tasks are delegated. In the current discussion about the assumption of debt, the treasurer also emphasizes the need for the federal government to fully contribute to the costs.

Minister Ina Scharrenbach made it clear in a statement that the state government is sticking to its support of the municipalities despite difficult financial circumstances. So far, the cities in North Rhine-Westphalia have reduced around 25 percent of their liquidity loans since 2017, which corresponds to around seven billion euros. While this shows progress, the persistently high debt burden remains a challenge, particularly for the most burdened municipalities.

Future steps

The exact amount of transferable loans in Bottrop is determined by auditors, and the council has already given its approval to the ASEG in anticipation of the law being passed in the North Rhine-Westphalia state parliament. The aim is to take over the old debts by the end of 2026. The action alliance “For the Dignity of Our Cities” has thanked the state government for its support and is continuing its efforts to sustainably improve the municipal financial situation.

Overall, the financial situation in Bottrop is tense, but the new measures could increase the chances of positive development. If the city implements the decided programs correctly and receives the necessary support, Bottrop could be put on a more stable, financially healthy course.