Germany's largest federal state sinks the country
Nov 29, 2022 19:24:19 GMT -5
Post by ExquisiteGerbil on Nov 29, 2022 19:24:19 GMT -5
Germany's largest federal state sinks the country: North Rhine-Westphalia has declared an economic emergency!
"Emergency situation"
29/11/2022 - 21:44 in Germany
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"Event with global ramifications" German authorities expect: "Have cash at home" - Emergency plans with capital controls
The state government in North Rhine-Westphalia (NRW) must take on new debt in order to combat the energy crisis with an extra five billion euros.
But this is not possible due to the national debt brake and for this he declared an economic emergency.
More specifically, in Germany, the debt brake is a constitutional regulation that the Federalism Commission decided in early 2009 to limit Germany's national debt and which has provided federal and state governments with binding guidelines for reducing the budget deficit since 2011 .
Therefore, in order to be able to get a new loan, one of the richest regions of Germany, which also includes the former capital of West Germany, Bonn, has now declared a financial emergency for this year and next year. The state government is speaking of a "state of emergency".
North Rhine-Westphalia is Germany's largest federal state by population. It has a population of approximately 18 million inhabitants and represents 22% of the country's Gross National Product.
To be able to take on the new debts, the state will enter an "extraordinary state of emergency" due to the consequences of the war in Ukraine. This is the condition for NRW to be able to take out loans under the debt brake rules.
The determination of such a "financial emergency" is the basis for allowing a federal state to take out loans despite the debt brake.
"We are in a recession that will last until 2023, " Finance Minister Optendrenk said. NRW is particularly affected by rising energy costs because there is a particularly large number of energy-intensive industries in the Rhine and Ruhr.
link
"Emergency situation"
29/11/2022 - 21:44 in Germany
0
"Event with global ramifications" German authorities expect: "Have cash at home" - Emergency plans with capital controls
The state government in North Rhine-Westphalia (NRW) must take on new debt in order to combat the energy crisis with an extra five billion euros.
But this is not possible due to the national debt brake and for this he declared an economic emergency.
More specifically, in Germany, the debt brake is a constitutional regulation that the Federalism Commission decided in early 2009 to limit Germany's national debt and which has provided federal and state governments with binding guidelines for reducing the budget deficit since 2011 .
Therefore, in order to be able to get a new loan, one of the richest regions of Germany, which also includes the former capital of West Germany, Bonn, has now declared a financial emergency for this year and next year. The state government is speaking of a "state of emergency".
North Rhine-Westphalia is Germany's largest federal state by population. It has a population of approximately 18 million inhabitants and represents 22% of the country's Gross National Product.
To be able to take on the new debts, the state will enter an "extraordinary state of emergency" due to the consequences of the war in Ukraine. This is the condition for NRW to be able to take out loans under the debt brake rules.
The determination of such a "financial emergency" is the basis for allowing a federal state to take out loans despite the debt brake.
"We are in a recession that will last until 2023, " Finance Minister Optendrenk said. NRW is particularly affected by rising energy costs because there is a particularly large number of energy-intensive industries in the Rhine and Ruhr.
link