The Association of German Cities has called for a new financing agreement with the federal and state governments in light of dramatic municipal finances ahead of the federal elections. "Cities and municipalities in Germany are under water, are so under water that many no longer know how they will get through the next few years," said the Vice President of the Association of German Cities, Leipzig's Lord Mayor Burkhard Jung, after a meeting of the municipal umbrella organization in Gotha.
Last year, the cities and municipalities ran up a deficit of 13 billion euros. However, the explosive nature of the situation with unbalanced budgets, enormous investment backlogs and inadequate infrastructure has not yet been recognized by the federal and state governments. "This is a cry for help, things can't go on like this," said Jung. In order to create affordable housing, for example, the rent freeze must be extended, urban development funding must be at least doubled and unnecessary regulations and standards must be dismantled. The debt brake must also be put to the test.
