Overview
- The state began sending approval notices on December 23 to 167 cities and municipalities under the Altschuldenentlastungsgesetz that took effect on July 18, 2025.
- Applicant localities reported about €17.7 billion in excessive liquidity loans, of which the state will assume roughly half through a debtor switch.
- Each participant will see at least 41.1% relief on these loans, with amounts above €1,500 per resident fully taken over for the most indebted municipalities.
- Essen will be relieved of €610.7 million, equal to about €1,041 per resident and a 41.1% reduction of its eligible debt.
- Municipal associations welcomed the move and urged federal support, noting liquidity debts have risen to €27.2 billion since end‑2023, up €6.3 billion.