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The public employee unions and retiree groups had objected bankruptcy alleging that the city authorities did not negotiate in good faith on the proposed cuts in retirement plans . Detroit is scheduled to now , that once was a major industrial center in the U.S. and engine cradle , a plan to restructure the payment of 18,000 million in liabilities in its balance sheet. The ruling by Federal Judge Steven Rhodes opens the way for the restructuring of municipal debt in the city. The judge, in a ruling that legal precedent , held that the pensions of public employees are contractual in nature under the law of the state of Michigan, but do not apply to a bankruptcy filing in federal court . Although the Michigan Constitution does not allow cuts in pension plans, the judge held that Rhodes can be reduced in a bankruptcy situation . Trade unions and retiree groups can appeal this decision.

The goal , according to the city comptroller Kevin Orr, Detroit emerges is that in 2014 the protection of the court with a plan to regain financial health . “This town , once prosperous and proud , can not pay its debts,” the judge said Tuesday Rhodes . “It is insolvent. Y is eligible for bankruptcy. This is also an opportunity to start again ,” he added . The declining competitiveness of U.S. manufacturing led to Detroit’s population fell by 25 % from 2000 to 2010, to 713,000 inhabitants , below the base of 750,000 taxpayers with income projections that were made. In addition , the city has been affected by the ongoing crisis in the motor industry , which received almost a stab death in 2009 with the bankruptcies of General Motors and Chrysler , a crisis which also affected Ford and all the auxiliary industry.

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