The state's governor, Kurt Beck, is blaming the European Commission for not approving a 13 million (near S$ 20 million) state aid package in time for a July 31 payment deadline. This could lead to a very high probability of insolvency at the end of the month because of insufficient liquidity, according to Kurt.
The race track has been operating at a loss for years, frequently requiring millions of euros in both direct and indirect state aid to survive. The park's financial woes began in 2004 when it began building a year-round amusement park and hotel complex that has only been partially completed and has so far been a commercial failure.
"The whole of Nürburg lives off the ring. Now the region itself might go down the drain," Mayor Reinhold Schussler told the local newspaper Trierischer Volksfreund. It looks like German chancellor, Angela Merkel, has got some work to do at home in addition to saving Greece and Spain.
The 25km long Nurburgring is one of the world's most famous race tracks. The course first opened in 1927 and a new track was built in 1984 to accommodate Formula One racing.