The Case of Hansestadt Bremen, Germany

Hansestadt Bremen is both a city and a state located in the North-Western part of Germany. It has a population of about 550,000 inhabitants, and it has become quite well-known throughout the country for its climbing debt. In 2012, such debt amounted to about 20 billion Euros, which represented around 500% of the city-state’s yearly budget. The Federal Government has agreed to grant 300 million Euros per year to the local government of Hansestadt Bremen, if it manages to reduce its deficit in the next five years. The Federal government granted the first 300 million in 2012, but asked to see a detailed plan on how they are going to reduce their deficit in 2013, 2014, 2015, 2016 and 2017. In 2017, they will no longer receive the 300 million grant. Moreover, they will only receive the grant after 2012 if the Federal government is satisfied with their proposal. The following is the income statement of Hansestadt Bremen, in millions of Euros:

Please answer the following questions, based on the data presented above (you don’t need to answer but you have to review the colleagues’ answers in the presentation and table attached)

1. Overall, how would you define the financial situation of Hansestadt Bremen in 2012? How about its prospects between 2012 and 2017?
2. Complete the missing values in the table above((you are to set out a scenario for the next few years, so that Hansestadt Bremen can receive the grant. That will require you to make decisions about how to re-work the finances and the policies/programs.), planning the future of Hansestadt Bremen to submit to the Federal Government in order to receive the 300 million Euro grant. Write a statement explaining the importance of the grant. (Hint: remember that increases/decreases in each area for future years have real political, policy, and social implications. What battles are you prepared to fight?))
3. In what areas, given the income statement above, do you think Hansestadt Bremen has been performing well, and in what areas has it been performing poorly? Support your answer with specific examples.
4. How important is the 300 million Euro five-year federal grant? In other words, if you worked for the Federal Government and had to give an opinion, would you speak in favour or against the grant?

To be successful in this assignment you will need to have demonstrated that you have:

• Critically interpreted the financial information included in the documents within the context provided
• Critically evaluated the financial situation presented with particular attention to its possible future developments
• A sound understanding of the difference between exchange transactions and non-exchange transactions
• A sound understanding of the concepts of solvency, liquidity and financial performance

So basing on the case study and the requirements above, my ‘colleagues’ just posted their answers to the questions(attached 2videos and 1audio) along with the table.

Requirement for this order

You will be assigned to review the work of 3 of your colleagues.

You must act as if you were a member of the German Federal Government, trusted with the power to decide whether or not Hansestadt Bremen will continue to receive the Federal grant.

Each of your colleague’s work is a different proposal.

You must respond to each one of them individually, stating whether or not their plan convince you, and justifying the reasons why you agree or disagree with their assessments, as well as stating whether or not the Federal Government will be confirming the grant.

To be successful in this assignment you will need to have demonstrated that you have:

• Critically analysed the proposal(s) presented to you, based on the financial information and context provided
• Provided adequate justification to your decision of confirming/not confirming the federal grant
• A sound understanding of the difference between exchange transactions and non-exchange transactions
• A sound understanding of the concepts of solvency, liquidity and financial performance
• The three colleagues’ presentation (one is audio, other two are videos) and tables have been attached. Just contact me if you have any question to make sure you understand the objective of this order.
• Many many thanks to youJ