It sometimes does not take long for the warm feeling left by the recent Christmas celebrations and the optimism of the New Year to be eroded by the cold reality of January bills.

Yet it is not just the humble citizen that is feeling a little broke this month; in fact some cities across many western democracies are getting close to bankruptcy. The recent sovereign debt crisis in the Eurozone, with the fear of Greece and even Ireland, and maybe Portugal facing insolvency, reminded the world that it is not just the banks that were over exposed – entire economies and states were too. Against this backdrop, 2011 is bringing a new level of financial insecurity, namely the debt of towns and cities across the USA and Europe.Commentators in the United States have recently suggested that between 50 and 100 cities could go bankrupt this year owing an almost incomprehensible 2 trillion dollars. These cities are unable to pay the growing interest payments on their enormous debts, and municipalities in Europe are in trouble too with cities in Italy and Spain on the brink.