Gesellschaft The holding company is a municipal company that owns the bathing company, most of the Rheinbahn shares and the airport share. This construction provides tax advantages. The money from the sale of the Stadtwerke shares was also pushed there.
Problems The problems at the airport caused by Corona and the consumption of reserves are pushing this system to its limits.
–
–
The second problem: Düsseldorf currently has significantly higher expenses than income. A high deficit of 132.6 million euros was planned for the current year, plus a minus of 107 million euros due to the pandemic, which may be shown separately in the budget. A return to a so-called structurally balanced budget is not in sight.
–
What are the future prospects? The next few years will be difficult. Other special problems are emerging as a result of the Ukraine war, among other things. The exploding construction costs are just as noticeable as the rising energy costs. Added to this are the recent alarming signals from the local economy . Many Düsseldorf companies recently stated in an IHK survey that they expect their situation to deteriorate.
–
According to the current status of planning, the important compensation reserve will be completely consumed in 2024, so the last financial reserves will disappear. As a result, the cross-accounting of the city subsidiaries in the city holding no longer works, which will be felt in the budget. “The future holds considerable risks,” says City Treasurer Dorothée Schneider.
–
What does the city pay for the borrowed money? Düsseldorf is benefiting from its good rating and low interest rates : four large loans taken out for construction projects in December are subject to interest of 0.43 to 0.75 percent. Of course, the city has to pay off the loans over decades. For the repayment of a 40 million promissory note loan alone, 250,000 euros will be due in quarterly repayments over the next 40 years. Then there is the interest.
–
How do the citizens notice this? There hasn’t been a big round of savings yet. In the Corona crisis, the black-green alliance issued the slogan that the economy should not be burdened with a tough austerity program by the municipality. Kämmerin Schneider recently wrote to the departments and asked for savings proposals for the 2023 budget. So far, however, this is no longer considered the usual procedure. There is also the question of whether larger construction projects could be postponed.
–
What is politics doing? CDU parliamentary group leader Andreas Hartnigk refers to the “special situation” caused by the pandemic. He sees the first positive signals in the trade fair business , for example, which is picking up again, and Düsseldorf has not lost its strength with trade tax. Keep an eye on the finances. “Despite the difficult situation, we have to continue investing in the infrastructure,” says Hartnigk. This applies, for example, to the maintenance of roads and cycle paths.
–
Green party leader Norbert Czerwinski makes a similar statement. “Our goal remains to be careful with the money and to return to a structurally balanced budget by 2025.” In view of the political and economic turbulence, however, reliable planning is currently difficult. “We have to take a critical look at all projects.”
–
Meanwhile, the FDP accuses the council majority of inaction. Group leader Manfred Neuenhaus refers to aPaid Content recently approved €52 million public toilet scheme. “Düsseldorf can no longer afford something like this and is doing it anyway,” criticizes Neuenhaus.
–
–
Related
