He emphasized the urgent need for the federal government to assume responsibility for municipal liquidity credits starting in early 2026 Schuchardt believes combining federal and state funding will make the debt relief measures significantly more effective
“This increases the opportunities for affected cities to regain financial flexibility and move beyond simply managing deficits” he stated However, Schuchardt cautioned that a sustainable solution requires addressing the structural underfunding of municipalities in North Rhine-Westphalia He urged the federal government to control the escalating costs of social spending, expressing confidence in the newly established Social Welfare Commission to deliver results He also called on the state government to consistently apply the principle of financial equivalence – ensuring full funding for any new responsibilities assigned to municipalities
