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600 million euros for Speyer: A new start for our municipalities!
Rhineland-Palatinate is launching a 600 million euro emergency program to support Speyer and surrounding municipalities in construction and infrastructure.
600 million euros for Speyer: A new start for our municipalities!
A fresh wind is blowing through the municipalities of Rhineland-Palatinate. The state government has launched an emergency program worth 600 million euros to help cities, municipalities and districts. The goal? Support in the current and coming year so that the ability to act is maintained in the future. In particular, constituency 39, which includes Speyer, Schifferstadt and the municipality of Römerberg-Dudenhofen, can benefit directly from this financial injection. This measure was presented by Prime Minister Alexander Schweitzer in July and is part of the “Active Municipalities” program, which provides initial funds from the municipal financial equalization system. The funds should be used specifically to renovate schools and daycare centers as well as to provide public services. Strong municipalities are crucial for economic development, according to the state government's requirement, as Speyer-Kurier reports.
But what exactly is behind this instant program? Prime Minister Alexander Schweitzer announced a comprehensive investment offensive. The financial injection comes partly from the state's reserves, which are expected to be around 2.1 billion euros after the withdrawal. The funds are distributed according to a key that is based on the social spending of the municipalities in order to guarantee a rapid effect. The supplementary budget should also support these goals. Another step includes the rapid planning of around 4.8 billion euros from the federal government's special funds for education, climate and infrastructure, which are to be distributed over the next twelve years. All of this is happening in a huge context in which the reduction of bureaucracy is also being pushed forward. A completely digital funding system for municipalities is the big goal, as Tagesschau notes.
Adjustments and challenges
The mood in the municipalities has noticeably worsened, not least due to the Corona crisis. Budget surpluses from previous years have now become a distant memory, while at the same time expenditure continues to rise and income falls. Austerity measures are expected to offset budget deficits. However, this could affect investments, experts warn. An investment backlog of 147 billion euros illustrates the urgency of the situation. The Hessian KfW has classified the level of investment as already inadequate and underlines the need for support measures, as is clear from the results of the KfW municipal panel.
Against this background, it is understandable that reactions to the new immediate program vary. The Greens are demanding that the municipalities make adjustments to the current framework conditions, while the FDP attaches importance to the targeted use of funds. In contrast, the CDU sees the immediate program as inadequate and criticizes it as a distraction from its own failures. The AfD is also questioning the timing of the investment offensive, especially with regard to upcoming elections. The financial situation of many cities is already strained, and some municipalities are even forced to sue the state to protect their interests.
It remains to be seen how the implementation of the emergency program will go and whether it can really provide the hoped-for positive impulses to ensure stability and development in the affected communities. A good hand and quick action are required in order to be able to meet all challenges.