Dramatic financial situation: German Association of Cities calls for billions in aid

At the same time, the association is calling for reforms to permanently reduce the burden on local authorities. This would also involve reviewing state services in the social sector, reducing bureaucracy and digitizing processes. If the measures are effective, emergency aid could be scaled back again, according to the position of the Association of Cities and Towns.

Increasing social expenditure, loss of trade tax revenue

Rising social expenditure, a slump in trade tax revenue as a result of the poor economy and new tasks that the federal and state governments have transferred to the municipalities were cited as reasons for the financial plight.

The cities themselves have exhausted their savings options, emphasized Jung. His city of Leipzig has a structural deficit of 280 million euros. Even if all cultural expenditure and sports funding were cut, this would not be enough to compensate for this deficit, he emphasized.

Leipzig is not alone in this, as his Lüneburg counterpart Claudia Kalisch (Greens) said. In her city, voluntary spending accounted for only three percent. Savings would hardly improve the financial situation, but would cause immense damage to the city, she emphasized.