In view of the catastrophic financial situation of local authorities, the Association of German Cities is calling for immediate aid and far-reaching reforms at federal level. "We need help, otherwise essential areas that we finance locally will be massively jeopardized," said the President of the Association of German Cities, Lord Mayor Burkhard Jung from Leipzig, following consultations of the municipal umbrella organization in Dresden.
Record deficit puts pressure on cities and municipalities
Around 3,200 cities and municipalities with around 54 million inhabitants are members of the Association of German Cities. More than 100 city leaders came together for the two-day consultations in Dresden. The focus was on the largest deficit in municipal budgets in the history of the Federal Republic of Germany, according to the Association of Cities and Towns. Jung put it at over 30 billion euros for 2025 - almost five times as high as in 2023. In 2022, there was even a slight budget surplus.
Social costs are a particular burden on local authorities. Jung specifically addressed the personal contribution to care costs, which the social welfare offices pay in full or in part if those in need of care are unable to afford the nationwide average of 3,245 euros per month themselves. "This is increasingly becoming standard financing," said Jung. According to him, costs in this area in Leipzig have doubled from 25 to 50 million euros per year over the past five years.
