German municipalities are facing a critical financial situation, prompting the German Association of Cities and Municipalities (DStGb) to urgently request support from the federal government and state governments. DStGb President Ralph Spiegler emphasized the need for an immediate relief program, stating it’s “nothing less than a vital investment in trust in the state and in our democracy.
Spiegler stressed the importance of swift action from both the federal government and the states. He acknowledged the anticipation surrounding the planned “Future Pact for Germany” previously announced within the coalition agreement and underscored the need not only for its rapid drafting but, more crucially, its swift implementation. The ability to fund essential future-oriented tasks is now at stake.
The DStGb president outlined specific demands, highlighting the need to address expenditure on social services and to provide relief for municipalities. He further advocates for increased digitalization and a reduction in bureaucratic burdens to stabilize the state’s future viability. Spiegler asserted that a functioning administration necessitates digital processes and that administrative overhead and standards must be realistically reduced to ensure implementation.
A recent Kommunaler Finanzbericht (Municipal Financial Report) published by the Bertelsmann Foundation revealed that German municipalities are projected to record a deficit of approximately €25 billion in 2024, marking the largest financial shortfall in post-war German history. This severe deficit is fueling the DStGb’s call for immediate and comprehensive governmental assistance.
