Local government associations are voicing increasing concern over the federal government’s perceived inaction regarding the growing deficits faced by municipalities across the country. Hans-Günter Henneke, chief executive of the German District Association (Deutscher Landkreistag), expressed this sentiment in an interview with the Frankfurter Allgemeine Zeitung, criticizing the current governing coalition for failing to adequately prepare the public for necessary policy adjustments.
Henneke stated that these adjustments would likely necessitate reductions in services. He noted that the District Association has presented numerous proposals to the coalition parties, none of which were incorporated into the current coalition agreement. These proposals reportedly include the extension of working lives – a concept previously suggested by Economics Minister Katarina Reiche.
Disappointment was also directed at Federal Finance Minister Lars Klingbeil’s latest budget draft. Henneke asserted that the proposal fell short of the expectations raised during the election campaign and that a course correction at this stage would prove exceedingly difficult. He further suggested a lack of commitment to fiscal consolidation, arguing that true consolidation involves reducing existing liabilities, rather than simply avoiding additional expenditure. The associations are signaling a growing pressure on the federal government to address the financial challenges facing local authorities.
