Burkhard Jung, the President of the German Municipal Association and Mayor of Leipzig, criticized the newly approved care reform, arguing that it imposes an additional financial burden on local municipalities. Consequently, Jung canceled his attendance at a scheduled meeting between the three leading municipal associations and Federal Minister for the Chancellery, Nina Warken.
Jung stated to various newspapers that despite the federal government’s initial promises to manage the billions of costs associated with nursing care, the new legislation actually creates further strain on cities, even if it is not as high as initially projected.
A key point of contention for Jung was the lack of a financial cap on the out-of-pocket contributions required from care recipients. He maintained that implementing such a “care ceiling” would have provided relief to the municipalities. Given his assessment, the municipal association president stated that this ceiling will not be included in the plan. He added that the states would need to block the law in the Bundesrat and refer it to the mediation committee.
Jung also strongly criticized the timing of the Federal Cabinet’s decision to pass the Nursing Care Order Act (PNOG) on Wednesday, just before a critical new rule governing the funding of federal laws takes effect the following day. He called this timing an “affront.” This concerns the principles of fiscal coordination, which mandate that the federal government must cover 80 percent of additional costs if new laws financially burden the states and municipalities starting October 1st. By passing the reform on September 30th, it remains outside the framework of these new financial rules.
Jung condemned the federal government for a breach of trust. He argued that forcing through a law that heavily burdens local governments just one day before the key financial regulations become active constitutes a betrayal. He asserted that the failure of the political commitment to uphold the principle of “whoever orders pays” cannot be dismissed simply because of a calendar day.
According to the Municipal Association President, local governments have been demanding relief from rising social costs for over a year. Jung concluded by reminding the newspapers that it is unacceptable for the social insurance systems to be stabilized by placing additional burdens on municipalities that are already facing a historically and dramatically critical financial situation.
