Virus wipes out Amsterdmans financial reserves

Amsterdam’s financial reserves have shrunk by €260m due to emergency spending during the coronavirus crisis, and its financial buffer is expected to evaporate entirely by the end of the year. This will mean the city has nothing to fall back on to tide through unforeseen risks or shortages that await it in the future. The coronavirus has hit Amsterdam's tourism earnings with special force and it's no longer earning money from parking taxes.

Other money spinners for the city, such as the dividends it traditionally collects from businesses it has a stake in, such as RAI and the Schiphol airport, have been slashed. Complicating matters is that Amsterdam is only allowed to borrow money in order to finance capital investments in the city, whereas covering financial shortfalls can only be done through its own funds.