Eindhoven in the ‘middle’ with debt

Eindhoven is in the middle with its debt. The debt position of the city is compared to that of other large municipalities in the Netherlands on average. This turned out Tuesday night during a city council meeting on municipal finances at the city hall.

The debt position of Eindhoven is certainly not alarming but there are serious risks. That was the message of fiscal experts and financial specialists who had come to the town hall. The meeting was requested by opposition party ‘Ouderen Appèl’ (elderly appeal) who have been very concerned about the mounting debt of the municipality.

According to experts, the debts are manageable. Now the net debt is about half of the budget which is, according to budget expert Ben Vosseberg, acceptable. However, there are risks, he says. Eindhoven should be careful not to want too much, and therefore borrow more to fulfill ambitions. Also, the ailing property market affects the city, like many other municipalities.

According to the largest coalition party PvdA (labour party), there is no reason for concern when it comes to municipal finances. That the debt position of Eindhoven is average, doesn’t mean that much, according to the political group. Councillor Arnold Raaijmakers says that how the money is spent is particularly important. Alderman of Finance Marco van Dorst agrees. He emphasizes that Eindhoven with its debt remains nicely within the current standards.

Eindhoven has a budget of 870 million euros.

Source: Studio040

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