Lolland municipality faces bankruptcy risk

Lolland Municipality may be placed under state administration unless drastic action is taken, Mayor Marie-Louise Brehm Nielsen warned at a packed public meeting on Thursday evening.

Addressing around 250 residents in Højrebyhallen, Søllested, the mayor said the municipality could reach zero liquidity next year if no measures are implemented. “The wolf is here now,” she stated, referencing long-standing warnings about the municipality’s financial crisis.

Lolland faces a projected deficit of 531 million kroner, with a population decline worsening the shortfall. Even with expected state subsidies and a hoped-for special grant of around 300 million kroner, a gap of at least 200 million kroner remains.

Per Nikolai Bukh, professor of public economic management at Aalborg University, called the situation “completely real” and supported the mayor’s assessment. He praised the decision to hold a public meeting, stating, “It’s important that citizens understand the situation and that action is necessary.”

Bukh explained that state administration would involve a temporary partnership with the Interior Ministry, which may provide liquidity loans in exchange for structural reforms. He noted that some municipalities have later viewed such interventions positively.

New resident Ole Hansen, who moved to Stokkemarke from Tølløse a year ago, described the outlook as bleak. “We think Lolland is a lovely place with lovely people, but it’s disheartening to hear a relatively new council with a new mayor sound somewhat resigned,” he said.