German Chancellor Merz stated on Saturday that the federal government will begin assisting local governments in repaying old debts starting January 1, 2026. Two weeks later, his government will face its first electoral test since taking office.
Merz made this commitment at a party conference of the Christian Democratic Union (CDU) in North Rhine-Westphalia. The state will hold local elections on September 14, and Merz’s government has been in power for four months.
Leaders of various states and local governments in Germany have expressed that the federal government has imposed additional welfare expenditure costs on local governments without providing corresponding financial support.
North Rhine-Westphalia (NRW) is the most populous state…