Association of Cities asks for emergency aid

In the view of the Association of German Cities, the financial situation of local authorities is dramatic. President Burkhard Jung is therefore appealing to the federal and state governments to decide on emergency financial aid for cities and municipalities at this Thursday's Conference of Minister Presidents.

"The cities can't take any more. Municipal budgets are collapsing by the dozen, now also in the richer southern federal states," the Mayor of Leipzig (SPD) told the Funke media group. "The municipalities therefore need immediate financial aid from the federal and state governments so that they do not fall into the emergency budget law across the board."

No subsidies for city festivals and sports clubs without a cash injection

Otherwise, "no services that are not legally or contractually owed can be provided", Jung explained. "This can then range from social work to subsidies for sports clubs and city festivals." However, people should not only experience the state as an administrator of scarcity.

According to Jung, the deficit in municipal budgets could exceed 30 billion euros this year. The municipalities account for around a quarter of total state expenditure, but only receive one seventh of tax revenue.