High social costs: local authorities receive extra aid from the state

Municipalities press for reforms

Saxony is thus helping the municipalities with the costs of social services caused by the federal government, Piwarz clarified. "We have bought ourselves time with the agreement made possible by state debt," stated the President of the Saxon Association of Towns and Municipalities, Bert Wendsche (non-party). "Time to bring public revenue and expenditure back into balance." This would require reforms in Saxony that would make the public sector more digital, faster and, above all, leaner. On the other hand, the federal government is called upon to curb the spending dynamics in the social sector or to bear the costs completely itself.

The agreement will by no means eliminate the budget imbalance of the districts, explained the President of the Saxon Association of Districts, Henry Graichen (CDU). Significant budget gaps remain.

The President of the State Tourism Association, Alexander Dierks (CDU), described the planned equalization of burdens for the health resorts as an important milestone. This would help to secure the infrastructure in the health resorts, the health services and the quality of tourism in the long term, he said.