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Merz promises debt relief for municipalities ahead of electoral test

  • Chancellor Friedrich Merz announced that Germany's federal government will aid municipalities in paying down old debts starting January 1, 2026.
  • Chancellor Friedrich Merz stated that the federal government will assist municipalities in paying down old debts starting January 1, 2026.
  • Merz made this pledge at the Christian Democrats party conference in North Rhine-Westphalia, where local elections will take place on September 14.
  • State and municipal leaders expressed concerns that the federal government's welfare costs have increased expenses without adequate funding.
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ReutersReuters
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Center

Merz promises debt relief for municipalities ahead of electoral test

Germany's federal government will begin helping municipalities to pay down old debts from January 1, 2026, Chancellor Friedrich Merz said on Saturday, two weeks before his government faces its first electoral test since taking office.

·United Kingdom
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After tough negotiations, a regulation on the debt relief of particularly affected municipalities will enter into force at the beginning of the year, the Chancellor announces.

·Munich, Germany
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For a long time, the federal government and the Länder have discussed a common old debt aid. At the beginning of the year, it should come now, says the chancellor. The upcoming municipal elections in NRW could have inspired this.

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aachener-zeitung.de broke the news in on Saturday, August 30, 2025.
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