German Region Declares Financial Emergency Amid Energy Crisis

(MENAFN- AzerNews)

By trend

The government of the German state of North Rhine-Westphalia had to declare a financial emergency amid the current energy crisis and plans to take new loans worth 5 billion euro to deal with the current economic situation, the VDR broadcaster reported, trend reports citing tass .

According to the report, the region's government needs more loans to tackle the current crisis, but had been unable to do so until recently due to a regulation that prohibits it to spend more than its budget has.

Therefore, the authorities are trying to bypass that regulation by declaring a financial emergency.

In order to justify more loans, the state authorities would refer to 'extraordinary [financial] emergency,' caused by the aftermath of the conflict in Ukraine.

The North Rhine-Westphalia government explains its plans for more loans by the region's weak economic development.

'We are in a recession that would continue until 2023,' the broadcaster quoted Marcus Optendrenk, the finance minister of North Rhine-Westphalia, as saying.


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