German Association of Cities: Municipalities are financially under water

The Association of German Cities has called for a new financing agreement with the federal and state governments in light of dramatic municipal finances ahead of the federal elections. "Cities and municipalities in Germany are under water, are so under water that many no longer know how they will get through the next few years," said the Vice President of the Association of German Cities, Leipzig's Lord Mayor Burkhard Jung, after a meeting of the municipal umbrella organization in Gotha.

Last year, the cities and municipalities ran up a deficit of 13 billion euros. However, the explosive nature of the situation with unbalanced budgets, enormous investment backlogs and inadequate infrastructure has not yet been recognized by the federal and state governments. "This is a cry for help, things can't go on like this," said Jung. In order to create affordable housing, for example, the rent freeze must be extended, urban development funding must be at least doubled and unnecessary regulations and standards must be dismantled. The debt brake must also be put to the test.

The President of the Association of German Cities, Markus Lewe, said that cities not only needed more money, but also more creative power. Otherwise, they would run the risk of being perceived as mere administrators of deficiencies. The municipalities were responsible for around a quarter of all state tasks, but only had one seventh of the tax revenue. The federal and state governments should therefore no longer be allowed to give cities additional tasks that are not fully financed. Among other things, the Association of Cities called for a higher tax share, fixed budgets, for example for climate protection instead of complicated funding programs, as well as relief in social spending.