SPD seeks a comprehensive resolution, not merely assistance.
In North Rhine-Westphalia (NRW), the old debt issue remains a significant concern as the state continues to actively manage its substantial debt portfolio. As of May 2025, NRW's outstanding debt stands at approximately €159.8 billion, with about €136.3 billion at fixed interest rates, a weighted average maturity of 20 years, and a weighted average coupon on fixed-rate debt of 1.92%.
The state's approach to debt management involves a benchmark strategy focusing on duration and cost efficiency, with ongoing refinancing and debt issuance efforts to stabilise and manage the debt burden effectively. This strategic approach has been reflected in the state's strong credit rating of AAA, affirmed by Fitch Ratings in 2025, demonstrating market confidence in NRW's debt management.
However, the role of the federal government in resolving the old debt issue is a topic of discussion. While Germany's federal structure allows states like NRW to manage their own budgets and debts, the federal government influences the broader fiscal framework. As of the latest 2025 data, there is no explicit evidence of a proposed constitutional amendment specifically aimed at addressing NRW's old debt issue.
The issue of municipal debts, including those in Oberhausen, is also a concern. Thorsten Berg, the SPD's Oberhausen mayoral candidate, and the local Social Democrats are urging a sustainable solution for municipal financing. Sonja Bongers, the Chairperson of the SPD city council fraction and a member of the North Rhine-Westphalia State Parliament, emphasises that old debt relief is not enough; a sustainable solution is necessary to prevent a new debt spiral from starting.
A draft constitutional amendment bill proposing the federal government take over half of municipal old debts is available, requiring a two-thirds majority in both the Bundesrat and Bundestag. The draft aims to prevent the buildup of municipal liquidity loans in the future. However, in the past, the Union in the federal government, as well as Minister President Wüst, have blocked this regulation before the elections.
The state government has allocated 250 million euros from 2025 onwards to reduce municipal liquidity loans. Meanwhile, coalition talks are ongoing between the Union and SPD to form a new federal government, and the outcome of these talks may influence the future of debt management in NRW and other states.
In conclusion, while NRW continues to manage its debt portfolio effectively, a sustainable solution to the old debt issue requires federal engagement. The ongoing coalition talks between the Union and SPD may provide an opportunity for a comprehensive solution to the old debt issue, ensuring the long-term financial stability of municipalities like Oberhausen.
The ongoing discussions revolve around the federal government's role in addressing NRW's old debt issue, given the state's active management of its policy-and-legislation concerning debt. This issue extends to municipal debts, such as that in Oberhausen, where calls for a sustainable solution for municipal financing are growing, citing the need to prevent a new debt spiral (general-news). The draft of a constitutional amendment bill has surfaced, proposing the federal government take over half of municipal old debts, but its approval requires a two-thirds majority in both the Bundesrat and Bundestag (politics). Thus, the outcome of coalition talks between the Union and SPD to form a new federal government may decisively shape debt management strategies in NRW and other states.
