Dresden has imposed a budget freeze for 2026 in view of its precarious financial situation. "The dramatic financial situation of municipalities across Germany leaves us with no other choice," said Lord Mayor Dirk Hilbert (FDP). All cities and municipalities are like Dresden. He cited "massive cost increases" in the social sector on the one hand and budget consolidation requirements on the other as the main reasons. Budget freezes meant cuts "where the citizens" felt it directly, said Hilbert. For example, in voluntary services for youth, culture or sport.
The budget freeze applies immediately for the 2026 financial year, meaning that only half of the planned budget will be released. The city justified the move by stating that an amount of around 64 million euros will already be missing at the end of 2025. In addition, according to current forecasts, the shortfall will increase again next year. "The need to prepare a supplementary budget for 2026 is currently being examined," it said.
Mandatory expenditure such as social benefits and personnel are excluded. In order to create planning security, 75% of the funds for voluntary services in the areas of youth, culture and sports funding are to be released. "The federal and state governments must finally provide relief, otherwise the performance of the municipalities and thus social cohesion will be jeopardized," demanded Hilbert.
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