Ahead of the ministerial conference (MPK) scheduled for Thursday in Berlin, the leading municipal associations of the federal and state governments have urged the federal government and the Länder to provide financial relief to cities and towns. The German newspaper “Welt” reports that Burkard Jung, President of the German City Association (Deutscher Städtetag), says that after many announcements and commissions, concrete reforms are now needed to truly ease municipal budgets. He warns that the financial crisis facing cities is unmistakable, forcing them to cut services across the board-from bus and train routes to culture, elderly care, and sports. These cuts spark intense debates that threaten the stability of local democracy.
Jung estimates the deficit of municipal budgets will be at least €30 billion this year, and calls on the federal government and the Länder to earmark immediate financial aid for the same year. One proposal is to lift the proportion of local share in the VAT revenue from 12.8 % to 22.8 %-a 10‑percentage‑point increase.
André Berghegger, Chief Executive of the German City and Municipal Association (Deutscher Städte‑ und Gemeindebund), reminded delegates of Chancellor Friedrich Merz’s pledge to convene a “special MPK” on municipal finances in the first quarter of 2026. Berghegger stressed that the financial conditions for municipalities are worsening quickly and that urgent support from the federal and state governments is essential. He expects the special MPK announced at the end of last year for the upcoming spring to take place soon.
Achim Brötel, President of the German District Conference (Deutscher Landkreistag), added that municipalities need substantial measures to curb dramatic cost increases, particularly in integration assistance and child and youth welfare. Brötel argued that local governments alone cannot shoulder these challenges, calling for a shared responsibility among all levels of government. Until such cooperation is achieved, he insists on immediate financial help from the federal government and the Länder to overcome the crisis threatening municipal democracy.
The municipal leaders will be in Berlin this Thursday at the invitation of MPK Chair and Rhineland‑Palatinate Minister President Alexander Schweitzer (SPD) for a crisis briefing with the heads of the 16 federal states.
