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Cities push for rescue package for threatened municipal services: German City Day

In a letter to Chancellor Olaf Scholz (SPD), Vice Chancellor Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP), the city council and several mayors are again pushing for a rescue package for the threatened municipal services. Among other things, a state guarantee framework, liquidity support for energy supply and help in the event of imminent payment defaults are needed.

“The economic situation for municipal services is getting worse by the day”,

said the president of the German Cities Association, Markus Lewe. The increase in gas and electricity prices has multiplied the need for liquidity. “Also, many customers will probably no longer be able to pay their energy bills. Municipal utilities will not simply turn off the tap here. They are committed to the common good and will continue to supply these customers,” explained the Mayor. of Münster.

Furthermore, an ominous chain reaction could ensue if one supplier were to capture the customers of another insolvent supplier. Even now, municipal services could hardly make subsequent bids for the expiring contracts. “This means that many commercial and industrial companies will be out of energy supplies within weeks.” The first cities should have already supported their suppliers. However, not all cities as landlords can fill such gigantic financial gaps, especially not over a longer period of time.

City Day also called for a gas price curb in addition to the planned electricity price curb. Rising gas prices in particular are heating up the price spiral, Lewe said. “We feel the growing pressure on the ground.” Citizens, companies, businesses and of course cities are burdened. A gas price curb would address everyone’s concerns.

“It’s about the cohesion of our society, the energy crisis must not lead to an ordeal.”

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