The German Association of Cities and Municipalities (Städte- und Gemeindebund) has called upon the federal government to allocate double the planned amount from the special fund to local municipalities. Speaking to the “Kölner Stadt-Anzeiger,” Managing Director André Berghegger stated, “We strongly urge the federal government to provide an additional 65 billion euros from the special fund where they can have the greatest impact.”
Berghegger specified that these funds should be used locally-to renovate schools and roads, adapt hospitals to the effects of climate change, and protect infrastructure against attacks. Currently, states and municipalities have access to 100 billion euros from the federal government’s new borrowing of 500 billion euros, with around 65 billion channeled specifically to local communities.
However, Berghegger warned that this amount is nowhere near enough to cover the municipal investment deficit, which stands at 231 billion euros across schools and roads. He noted that due to the dire financial situation faced by local governments, these necessary investments cannot be made. Even if the funds from the special reserve were doubled, he added, the deficit could not be completely closed. Furthermore, additional resources are required for adapting to climate change consequences, ensuring public safety, managing civil defense, and protecting critical infrastructure.
