Home News State of emergency declared in German region due to energy crisis

State of emergency declared in German region due to energy crisis

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In the German federal state of North Rhine-Westphalia, a state of emergency (state of emergency) was introduced amid an energy crisis, reports WDR. To solve economic problems, the regional government plans to take on debt obligations in the amount of €5 billion.

As the portal clarifies, in order to be able to issue a new loan, the land authorities intend to refer to the “exceptional emergency situation” that arose as a result of the conflict in Ukraine. In accordance with the rules of the “debt brake”, the state of emergency is a necessary condition for a region to be granted a loan, WDR clarifies.

The state authorities note that plans to take on new debts are dictated by the weak economic development of North Rhine-Westphalia. “We are in a recession that will last until 2023,” said the region’s finance minister, Markus Optendrenck.

Optendrenck planned to allocate €3.5 billion to fight the energy crisis, which were taken from the state fund to support the region in connection with the coronavirus. However, the auditors considered the decision “unconstitutional” because it violated the requirement that the funds must be spent for the original purposes, the material says.

North Rhine-Westphalia, the portal notes, is particularly affected by rising energy prices, because many energy-intensive industries are located on the Rhine and Ruhr rivers.

The energy crisis in Europe followed the outbreak of the armed conflict in Ukraine due to the reduction in supplies from Russia. According to the Federal Statistical Office of Germany, inflation in the country in November could reach a record 10%.

Milena Kostereva

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