Deutscher Städtetag president Burkhard Jung demands €30 billion annual immediate aid from the federal government for municipalities starting no later than 2027. He described the financial situation as catastrophic, with deficits exceeding €30 billion in recent years. Causes include rising social spending and declining revenues.
Deutscher Städtetag president Burkhard Jung, Leipzig's mayor (SPD), has decried the catastrophic financial state of German cities and municipalities. He stated: “So schlecht ging es den deutschen Städten und Gemeinden seit 1945 nie zuvor” – never before since 1945 have they been in such poor shape. The association demands €30 billion in annual immediate federal aid starting no later than 2027. Jung warned: “Die städtischen Haushalte sind im freien Fall” – budgets shifted from surplus in 2022 to a €6 billion deficit in 2023 and over €30 billion in the past and current years. The group proposes temporarily raising municipalities' VAT share from 2.8% by ten percentage points. Long-term reforms are also sought. Key factors include rising social expenditures, collapsing trade tax revenues amid weak economic conditions, and new responsibilities from federal and state levels. The association also expressed concern over about 1.3 million Ukrainian war refugees, as the relevant EU directive expires next year. Lüneburg mayor Claudia Kalisch (Greens) cautioned that shifting them to asylum seekers' benefits would overwhelm municipalities financially and administratively.
