Berlin Loses Coveted “Capital Of Debt” Title

But only for this season, I’m convinced of it. Debters never quit and quitters never… something. The German cities with the highest per capita debt all seem to be “out west” right now. The Angeber (showoffs).


But there is more to Berlin debt (61 billion) than first meets the eye. The city has cut spending, as anyone who lives here sees on a daily basis, but the money being saved isn’t really from tax revenue generated here in Berlin. Berlin is being kept alive by money coming in from the so-called Länderfinanzausgleich (inter-state fiscal adjustment) system. The rich German states (Bavaria, for instance) get milked for those less inclined to, uh, be rich (Berlin, for instance).

You know, solidarity. Or Umverteilung (redistribution) of other people’s money, if you prefer.

Es bleibt dann leider noch ein Schuldenberg von 61 Milliarden Euro übrig. Das kostet jährlich rund 1,9 Milliarden Euro Zinsen, trotz des immer noch extrem niedrigen Zinsniveaus.

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