In the small town of Döbeln, in the German Saxony, a group of citizens is trying to create structures parallel to the state. They are backed by the libertarian private cities movement and are affiliated with the Global Free Cities Fund, which promotes civic cooperatives and cities where entrepreneurs, not politicians, make the rules.

On the initiative of the citizens of a small German town with 23,000 inhabitants, who want a “cooperative” and disconnection from state institutions, Tagesschau.de reports on the basis of internal documents of the cooperative called “Protocols” available to television. Reschke Television.

“It follows a very clear goal, which is to destroy structures,” says Mittelsachsen district administrator Dirk Neubauer, “and it is explosive.” The project, which was founded about a year ago as “Bürgergenossenschaft Mittelsachsen”, offers “a parallel structure for coexistence as an alternative to existing institutions”.

“Free Cities” Foundation.

According to the mentioned journalistic study, the group has close ties with a foundation in Liechtenstein, which is part of a global network: “Free Cities Foundation”. Its president is Titus Goebel, the brainchild of the libertarian private cities movement.

Its goal is to create parallel structures where companies take the place of states. His “product,” as he calls it, is a minimal government, a company that acts as a service provider with government functions and charges an annual fee instead of taxes.

Goebel, who holds a doctorate in law and founded Deutsche Rohstoff AG, has already played a key role in creating a stateless zone in Honduras. He was one of the authors of the legal framework for the company Próspera – a private city on an offshore island, which became possible only because of constitutional changes in Honduras.

After the change of government, the current Honduran government declares Prospera illegal. Among the investors is the co-founder of PayPal, American billionaire of German origin Peter Thiel.

Saxon cooperative and extremism

The civil cooperative (Bürgergenossenschaft) Mittelsachsen is registered with the tax office in Debeln. The co-owner of the office, Mathias Hertz, presents himself as an “ambassador” of the “Free Cities Foundation” and maintains contacts with Goebel.

Hertz said in an interview with NDR: “We united, so to speak, intellectually. And then he came to me and said – Germany, Germany is important to me. I have an idea for a cooperative – what do you think?”.

Goebel is also quoted in the Civic Cooperative’s internal minutes with reference to his book Free Private Cities. Hertz’s attorney, who also represents Titus Goebel, notes that the minutes should be understood as “transcripts of conversations” and not as official minutes or documented decisions, so they do not reflect the Civic Cooperative’s position.

In addition to the network within the libertarian network, the Civic Cooperative would have co-sponsors tied to the Alternative for Germany party and questionable connections at the local level. According to an investigation by NDR television, one of the founding members was in contact with Reich Citizens (Reichsbürger) active in the same country. The cooperative denies information about this fact.

In addition, in the documents of the Cooperative there are constant references to the party “Freie Sachsen” (Free Saxons), which the Office for the Protection of the Constitution of Saxony classifies as a far-right movement.

Titus Goebel emphasizes that his approach is non-violent and without subversive intent: “In our troubled times, civil cooperatives are a political proposal for peace. Unlike citizens of the Reich, for example, this is clearly done within and with the recognition of the applicable legal system.’

The Honduran experiment

The Honduran island of Roatan is a palm paradise in the Caribbean and the scene of an experiment in civic cooperation. “Prospera” (prosperity) is an enclave of independent investors, which is being created in the palm jungle, on 23 hectares and is called “ZEDE” for short.

Prospera is one of the most controversial projects in recent Honduran history. For some, this is a long-awaited chance for prosperity. For others, it means selling state sovereignty.

The mastermind behind this project, Eric Briman, was born in Venezuela, grew up in the US and is the CEO of Prospera Inc. “Our mission is to create wealth where it is most needed,” German media quoted Bremen as saying.

And it should work like this: through a 2013 law, the state of Honduras ceded its sovereign rights to ZEDE. The enclave establishes its own rules, in the form of a kind of constitution. Próspera has low tax rates: 10% income tax, 1% property tax.

Disputes are not resolved by Honduran courts, but by arbitration courts. Education, health care, police, urban development – everything becomes a private service. The rules are adopted by the city council of nine people, some of whom are appointed by companies, and some of whom are elected by citizens.

Residents sign the contract. Foreigners pay $1,300 a year for accommodation, Hondurans pay $260 a year, and the Honduran state pays almost nothing in taxes. However, for the moment the situation is at a standstill, as under the new government the situation is judicial, if not unconstitutional.

The Honduran government has hired world-renowned lawyers to win a legal battle against an investor city. Last year, the new Congress repealed the ZEDE law in its first reading to remove the basis for Próspera from the legislation.

The so-called “charter cities” arose from the idea of ​​the former head of the World Bank, Paul Romer. Behind the private city movement are pro-market, ultra-liberal and libertarian thinkers who believe that the market runs things better than the state.