Disaster for the municipalities
Pforzheim is a town of nearly 119 000 inhabitants in the state of Baden-Württemberg, southwest Germany. It is world-famous for its jewelry and watch-making industry. Because of that it gained the nickname "Goldstadt" or Golden City. It has an area of 98 km² and is situated between the cities of Stuttgart and Karlsruhe. Unfortunately, lately the city is becoming famous for another thing. On 5 January 2010, "Die Welt" published a story of a long struggle of the town Mayoress and her city treasurer that may lead to a legendary loss of 77.5 million euro in the years 2014-2017. The translated version of the story is available at the link below.
By Jan Dams “Die Welt” (Germany), 5th January 2010 In order to reduce the heavy burden of interest, hundreds of communities have resorted to investing in high-risk financial products. Pforzheim is now threat-ened with the loss of nearly 80 million euro. Now the city wants to reclaim the money from the banks. However it has a very thin chance of success.