Several cities in Saxony drew attention to their dire financial situation during the nationwide day of action. Dresden, for example, will have to take out loans for the first time in 20 years, according to a statement from the city. According to the report, even the state capital is projected to have a deficit of around 78 million euros this year. By the end of 2031, a total liquidity deficit of around 130 million euros is looming. The federal and state governments must take action to counter this.
According to the leading municipal associations, a cost deficit of 29.6 billion euros looms nationwide next year. Reserves have been depleted in many places, emphasized Achim Brötel, president of the German County Association (DLT). If this continues, it would mean that the municipalities’ mountains of debt would “literally explode.”
On Thursday, the heads of state and government of the federal states will meet with Federal Chancellor Friedrich Merz (CDU) in Berlin. Among other things, a financial reform could be set in motion at this meeting. This would involve, among other issues, the principle of “causal connection” (i.e., “whoever orders it, pays for it”)—one of the associations’ demands.
