In this project, an international comparison of the possibilities for local governments to borrow money is made. Especially the role of ways and mean advances being more and more responsible for the increasing debts of many (economically underdeveloped) municipalities (in Germany) is investigated. Therefore, the institutional as well as the economical situation of the German municipalities are compared with the situation in other (more successful) European countries (Belgium and Switzerland) having a similar federal structure in order to get possible methods of resolution how to reduce debts. In addition, the chances and risks of the replacement of the cameralistic accountancy with the double-entry bookkeeping is investigated.