Berlin is bankrupt

That is the latest news, or rather not exactly news, since Berlin has been running a deficit for ages. The city sued the federal government to make it pay the deficit, and the high court said "no way".

Berlin had some reasonable arguments. It has heavy police and other costs as the national capitol. It also has the three serious universities in the greater Berlin-Brandenburg area, all of which get many Brandenburg students who pay no tuition. When some years ago there was a vote to make Berlin part of Brandenburg, the city voted in favor and the countryside against. The latter apparently had the impression that they might end up paying for city services, and they would much rather have the city provide services to them for free.

The court argued along different lines. Berlin as a city is actually quite visibly rich. It just happens to have a "red-red" coalition (an alliance of the Social Democrats and Party of Democratic Socialism ,which is the new name for the former Communists). The coalition could sell large tracts of city owned rental housing and it could do what most other German states have done and start charging tuition. It could even raise the price of opera tickets to support the city's three opera companies. The local papers saw the court decision as more of a slap in the face for the coalition than for the city itself.

It's hard to think of Berlin as anything but well off when I cross the River Spree on the way to my office, or when walking through the main quad of the university's grand old building. It is a beautiful place and mere bankruptcy seems hardly worth worrying about. (These pictures were taken with my phone)