Viersen district: Budget in crisis – what should happen next?

Viersen district: Budget in crisis – what should happen next?

Thomas Heil, treasurer of the Viersen district, recently discussed the economic development of the district at the regional forum of the IHK Mittlerer Niederrhein. In his presentation, he emphasized the pressing challenges that municipalities face, especially before the upcoming local elections in the fall. Rainer Höppner, IHK Vice President, agreed with Heil and pointed out the importance of a stable economic situation.

Heil warned of zero growth nationwide, which could have far-reaching effects on municipal finances. The financial situation of German municipalities was alarming in 2022: a deficit of 24 billion euros was found, the highest since reunification. In North Rhine-Westphalia (NRW), municipal debt rose by 13 percent. The municipalities in the Viersen district also suffer from this, where only 15 of 427 cities and districts have a balanced budget.

The financial situation in the Viersen district

The Viersen district budget has a deficit of 40 million euros for 2023, compared to 30 million in the previous year. What is worrying is that none of the nine district municipalities can show a balanced budget. One of the municipalities is even in the budget security concept. While tax revenues are only growing moderately, expenses, especially in the social sector, are rising to a worrying 400 million euros.

Heil called for a fundamental overhaul of the social benefits system and planned better financing from the federal and state governments in order to stabilize the financial situation of the municipalities. These suggestions can also be found in the Bertelsmann Foundation's municipal finance and debt report, which analyzes the pressing problems facing municipal budgets in North Rhine-Westphalia.

Economic developments and projects

Another key topic was Javelin Park, a planned economic development project in the region. However, the development of the park has suffered delays due to an urgent application against the development plan. Verdion is planning 650,000 square meters of tailor-made buildings for companies from various industries, which entails an investment volume of 1.04 billion euros.

The project could create up to 5,000 direct jobs and also includes a truck stop and its own motorway connection. An important aspect of Javelin Park is its focus on sustainability, which makes the location attractive for both companies and investors. The proximity to the Dutch border and major transport links is another plus point that could promote the region's economic development.

Höppner expressed the hope for a quick solution to the Javelin Park's hurdles in order to be able to fully exploit the economic potential of the Viersen district. Both speakers called for increased political commitment to overcome the challenges at the local level.

In summary, it can be said that the financial situation of the municipalities in North Rhine-Westphalia and especially in the Viersen district is serious, and that sustainable projects such as the Javelin Park could play an essential role in economic recovery. Further information on the municipal financial situation can be found on the Bertelsmann Foundation website Municipal finance and debt report NRW provides. Also reported Extra tip on Sunday about current developments in the region.