In December 2009 the Act on Economic Growth Acceleration passed the German Parliament. This act is a response to the world economic crisis and the intention is to reduce taxes so that people keep more money to spend on consuming. This - so the idea - should well promote the re-growth of German economy. Tax income deficiencies due to this act however are said to be at 4.63 billion Euros for the Federal Government, 2.28 billion for the German countries and yet 1.57 billion for the communities.
So it is obvious that many towns and communities are having a huge problem, especially those ones, which are already persisting at their financial limits. However, federalism and subsidiarity open options for creative solutions to this problem. Some communities have already been surprisingly inventive on how best to avoid the trap of debts. Alexandra Fleskes has quite researched this issue and reports some four examples how communities and towns make do with the new act.
Lengenfeld, a town in the Rhine Land, has literally swept their debts away. One among several measures the Lengenfeld citizens took was that they have taken personal charge of their town's street cleaning. They did it all themselves and pro bono at that, as this job is something all can do and all would do, as it is their place and they are the ones who in fact directly benefit from their doing. Quite remarkable costs could be saved by this one. Further the Lengenfelders have reduced the number of administrative stuff, which is yet well paid and hard working now. Treasurer in charge, Detlef Müller, was happy when on October 3 in 2008 the town of Lengenfeld could celebrate a three-day-party over being free from debts after 20 years.
Aachen, a self-governing city with self-responsible budget came up with the idea to link the adjacent equally self-governing and self-budgetary districts and gather the region under one roof. By this the separated and many spheres of competencies and responsibility were cut down to just one for each matter, like for example there now is only one central office for rescue instead of the earlier three. Same was pursued with other double, triple or even multiple existing offices, which have now grown to be just one now, yet covering the needs of the entire region. By this the town saves an annual total amounting to a seven digit sum.
Quickborn, is a small-town in Schleswig-Holstein, did not long seek for solvent lenders but just so taped its own residents. And those were ready and willing to help out: About 80 citizens have lent their town government a total of fat four million Euros for an interest rate of 3%. Yet the supervising Federal Office for Credit Transactions and Agreements thwarted the idyllic small-town's dealings: Citizens borrowings are bank affairs and Communities are not allowed to pursue such.
Due to the Act on Growth Acceleration all hotels charge their customers less VAT. This is a huge loss to cities and communities. The city of Cologne loses an estimated amount of 6 million Euros this year. "This is completely non-feasible," so says the Cologne SPD City Chair Councilor Martin Dörschel. His suggestion is to charge tourists an extra 5% per night and bed in any Cologne hotel. This money should go to the city's culture budget. Other cities much applaud this brilliant idea and are already all set to follow the example of charging this tourist's bed-tax.
Indeed one might wonder how things work out on a level as low as the local government's budgets and how they make do. But these stories yet tell that the creative one's still remain the fortunate ones. It is the attitude of not just sitting and waiting for problems to solve themselves or being solved by others - preferably by those, who caused them, but to get up on one's feet and to take up the concerns that matter. This attitude is precious as it is an attitude of problem solving, and all who are affected readily and willingly respond to such, as it is clear that they and their common good benefits from such doing. The more add to such creative, inventive and innovative shaping of one's social, economical and political environment, the more directly and indirectly benefit from that. This model, the idea of taking up one's places economic, social or political concerns, is a common value wherever people in this world live together in a community, a town or a city. It is something all can contribute to and all then can benefit from. It creates togetherness in solidarity and mutual responsibility.