Oberhausen. The Corona economic crisis is placing such a heavy burden on Oberhausen that the city will have to incur new debts of 102 million euros next year.
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Through the worldwide Corona-Pandemie
triggered Economic crisis
In just one year, the over-indebted city of Oberhausen has largely wiped out the savings successes of the past ten years. The Oberhausen city treasurer Apostolos Tsalastras drew this bitter conclusion after nine months of the spread of the corona when he presented his budget for 2021.
Instead of not taking on new debts as in the past four years, but instead even repaying old debts, Oberhausen will have to take out 102 million euros in loans next year to cover the expenditure of around 890 million euros. The per capita debt will increase by 5.3 percent in 2021 compared to this year – from 9032 to 9512 euros. That is almost 500 euros more in debt per Oberhausen citizen.
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“This means that in a year of crisis, all loan repayments that we were able to make were by far exceeded by new loans. The new debt is progressing again ”, regretted Tsalastras in the main committee on Monday. “This is a huge setback in our efforts to gain financial authority.”
City treasury caught on both sides
The Oberhausen city treasury is gripped from two sides. On the one hand, income is falling – almost 1,500 companies have now reduced their trade tax prepayments due to bad business or set it to zero. In 2020 alone Oberhausen will lose 39 million euros in trade taxes – a total of 56 million euros in tax revenue will disappear. On the other hand, the corona-related expenses for the rescue service, as a subsidy for the Stoag and in the health sector – this year by over 72 million euros.
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The federal and state governments are helping municipalities like Oberhausen with impressive one-off compensation payments, especially this year (30 million euros for trade tax minus, six million euros for Stoag, strengthening pact funds of 23.6 million euros), but it will look to the next few years The chamberlain’s view was gloomy.
Huge amount of new debt necessary
If the federal government and the state do not support structurally weak cities such as Oberhausen more energetically and over the long term, according to the treasurer’s account, Oberhausen will not be able to present a balanced budget until 2030, so only then does not have to take out any additional loans for its expenses. Until then, the new debts will pile up to the gigantic sum of 500 million euros – which would be added to the existing 1.9 billion euros of old debts. The per capita debt would rise to 11,900 euros. So far, only the structural aid promised by the federal government to cover the majority of the accommodation costs for Hartz IV recipients is certain – that means an additional twelve million euros annually for Oberhausen.
Officially, on paper, the 2021 budget for Oberhausen even ends in a plus (800,000 euros). This is solely due to the fact that the state government allows the cities for 2020 and 2021 to outsource all corona costs to a shadow budget and generate imaginary income from them – “booking tricks” (Tsalastras). The corona losses in 2020 and 2021 should be generated over the next 50 years – by future generations.
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Despite all the Corona trouble, Oberhausen wants to invest record sums again in the coming year: it will be 110 million euros in 2020, 107 million euros in 2021. “This will boost the economy, we will do something for our citizens and for our common future,” said Mayor Daniel Schranz in his speech in the main committee, focusing on the positive aspects of the budget – despite the “greatest crisis since the Second World War” .
Lord Mayor: Don’t save up against the crisis
The Christian Democrat praised the great support from the federal and state governments. “What must definitely not happen now is that the state is trying to save up against the crisis. That would mean an even bigger economic slump. A cut in municipal investments would be poison for the economy. “
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