Community in need: Financial crisis threatens to paralyze cities!

Community in need: Financial crisis threatens to paralyze cities!

In Germany, a worrying picture is shown in the financial situation of the municipalities, and life in cities like Munich could soon bring noticeable changes. According to a current analysis of the financial situation of the cities, the location * is dramatic * and the pressure is greater every year. The President of the German City Day, Markus Lewe, speaks of a "complete U -turn towards the worse".

A survey by the German City Day reveals that 95% of the cities assess their budget situation as rather bad or very bad in the next five years. It is noteworthy that only 6% of cities can present a balanced budget this year. Wealthy cities such as Munich are particularly affected, which have already imposed an investment lock over more than one billion euros in order to meet the strict financial guidelines. As a result, many municipalities have to reduce areas and restrict important services.

rising costs and unsecured finance

A main reason for the precarious financial situation is the *exploding social spending *on which the cities have little influence. The costs for childcare, integration assistance and care have increased by a third since 2013. It is particularly alarming that expenses for child and youth welfare have doubled in the past ten years- from 33 billion to 67 billion euros. The municipalities bear about 85% of the costs for these measures without increasing the income accordingly. This development means that cities like Leipzig are planning savings of 500 jobs and further extensive measures to reduce local public transport are discussed.

Burkhard Jung, Vice of the City Day, warns of the * tangible consequences * of the constraint, which is reflected in savings in swimming pools, sports clubs, libraries and schools. Citizens feel the financial bottlenecks of rising club contributions and reduced cultural offers and have to prepare for longer waiting times and shorter timetables in public transport.

demands for reforms

a rethink is required. The German Cities Day warns that no new, financially unused tasks may be passed on to the cities. In addition, a reform of the debt brake is considered necessary. This reform has already been discussed, but there are different opinions within the CDU. At the federal and municipal level, there is a lively debate about how the finances should go on and how the burdens can be distributed fairly. A higher proportion of cities in community taxes, such as VAT, could offer a solution here.

The challenges for the city finances are enormous, and without targeted measures, the situation could be further tightened in the coming years. This is also emphasized by Markus Lewe, who again underlines the importance of local services for the relationship between the citizens and the state. Because only through an intact municipal infrastructure can trust in public services be maintained.