Transferring control... and then a blend of black and green?
New Mayor Stephan Keller Faces Challenging Budget for 2021 in Düsseldorf
Stephan Keller, the newly appointed mayor of Düsseldorf, Germany, has presented a budget for 2021 that he described as "coronavirus-related difficult." The budget, amounting to approximately 3.1 billion euros, aims to address the financial challenges posed by the pandemic while investing in digitalization, cultural buildings, and transportation infrastructure.
The budget is expected to have a minimal surplus of 300,000 euros, with revenues and expenditures offsetting each other. To finance investments in 2021, a loan of 164.1 million euros from the city's holding company and an additional 57.8 million euros from banks is planned.
The economic impact of the COVID-19 pandemic is a significant factor in the budget, with decreasing trade tax and missed distributions from municipal subsidiaries contributing to the financial damages. To manage these challenges, the budget has been carefully crafted to balance investments with limited revenue streams.
In an effort to achieve a future-oriented cooperation agreement and implement projects, measures, and visions, Stephan Keller is considering a black-green city council cooperation with the CDU. The exploratory talks with the CDU covered around 20 topic blocks, including the climate crisis, transport turnaround, affordable housing, and an open and diverse Düsseldorf.
The Greens' member assembly voted 74 percent in favour of starting talks for a potential coalition, a move seen as crucial for Keller to achieve his goals. However, the potential coalition has faced criticism from the SPD, with Andreas Rimkus, chairman of the SPD Düsseldorf, stating it goes against the Greens' campaign promises.
Despite the challenges, Keller has ruled out increases in taxes and fees. He emphasized that they do not want to postpone important investments, and Geisel, the outgoing mayor of Düsseldorf, wished his successor good fortune and a lucky hand in navigating these challenging times.
In Düsseldorf, 2,621 businesses have applied to set the trade tax to 0, corresponding to 160.9 million euros. This move is aimed at supporting local businesses as they navigate the economic impact of the pandemic.
As the budget planning process unfolds, official municipal or state government sources will be the best reference for detailed information about the budget plan and the financial issues it seeks to address. Typical municipal budget contexts in German cities like Düsseldorf in 2021 often focus on managing the economic impact of the pandemic, balancing investments in urban infrastructure, digitalization, and social services with limited revenue streams, and ensuring fiscal sustainability amid increasing demands on public services.
[1] German Federal Budget 2021 [2] EU Multiannual Financial Framework 2021-2027 [3] German Defense Budget Increase Post-2021
- Stephan Keller, the newly appointed mayor of Düsseldorf, is facing a challenging finance scenario in 2021, with the budget projected to have a minimal surplus and investments financed through a loan and bank borrowings, amid the economic impact of the COVID-19 pandemic.
- The budget for 2021 in Düsseldorf is closely linked with political decisions, as Stephan Keller is considering a cooperation agreement with the CDU to implement projects and address major issues such as the climate crisis, transportation turnaround, and affordable housing, despite facing criticism from the SPD.
