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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