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'The Rhinish Greeks'. Bailout funds for local government in German federal states

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  • Hubert Heinelt
  • Philipp Stolzenberg

Abstract

In response to the budgetary problems of local government in Germany, some federal states ( Länder ) have established bailout funds for their highly indebted local authorities. These schemes commit local governments, on a contractual basis, to strengthen their own consolidation efforts in return for fiscal aid. The ambitious aim is to reduce short-term borrowing considerably or to eliminate annual deficits completely.This article provides an overview of the structure of the schemes with respect to the amounts and sources of funding as well as the conditions of participation and potential sanctions. Furthermore, this contribution explains the motives of the governments of the federal states to establish these schemes.

Suggested Citation

  • Hubert Heinelt & Philipp Stolzenberg, 2014. "'The Rhinish Greeks'. Bailout funds for local government in German federal states," Urban Research & Practice, Taylor & Francis Journals, vol. 7(2), pages 228-240, July.
    • Handle: RePEc:taf:rurpxx:v:7:y:2014:i:2:p:228-240
    DOI: 10.1080/17535069.2014.910934
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    References listed on IDEAS

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    1. Wyborny, Andreas, 2006. "Die Ziele des Neuen Kommunalen Rechnungswesens (Doppik) und ihre Einführung in die öffentliche Haushaltswirtschaft," Wismar Discussion Papers 15/2006, Hochschule Wismar, Wismar Business School.
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    1. Udjianto Djoko & Hakim Abdul & Domai Tjahjanulin & Suryadi Suryadi, 2020. "The Implementation of Village Fund Policy: A Comparative Study in Improving the Public Welfare in Two Villages in Pati Regency, Central Java," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 11(1), pages 87-94, April.

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