Saxony's municipalities are complaining about a growing financial crisis. At the end of the third quarter of 2025, cities, municipalities and local authorities in the Free State had a budget deficit totaling 1.113 billion euros, according to cash flow statistics. At around 591 million euros, a large part of this is attributable to the independent cities of Dresden, Leipzig and Chemnitz.
The deficits have risen to astronomical levels, said Bert Wendsche, President of the Saxon Association of Towns and Municipalities (SSG), according to the press release. "The sound barrier of a billion euro deficit was broken in the third quarter."
