The German Association of Cities and Municipalities has strongly criticized the plans presented by Federal Finance Minister Lars Klingbeil (SPD) regarding financial relief for local governments concerning old debts, deeming them insufficient. According to the association’s chief executive, André Berghegger, speaking to “Redaktionsnetzwerk Deutschland” (Wednesday editions), while they generally welcome the coalition’s commitment to aiding municipalities in reducing historic debts, the proposed relief of roughly one billion euros over the next four years is “not even a drop in the bucket”. Municipalities have experienced an almost 60-billion-euro financing deficit over the past two years, with no signs of improvement. Berghegger further stated that the issue is not solely one of old debt, but increasingly a problem of new debt due to high deficits. The association urgently requested additional support, such as the expenditure reduction for social services promised in the coalition agreement.
Politics
