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Baden-Baden on the financial brink: debts are growing dangerously!
Baden-Baden is facing a financial crisis: 300 million euros in debt and a 40 million euro budget gap per year.
Baden-Baden on the financial brink: debts are growing dangerously!
A financial crisis is currently affecting citizens in Baden-Baden. With a debt amount of approx300 million eurosincluding investments, the city is fighting against an annual budget gap of around40 million euros. The town hall acts on sight and makes decisions in a financial fog, as goodnews4.de reports. The city's financing comes largely from advances from the state and cash loans, which further complicates the situation.
But where does this financial course lead? Ralf Broß, the executive board member of the Baden-Württemberg Association of Cities, recently commented on the dramatic budget situation and emphasized thatMandatory tasks are not adequately funded by the federal and state governmentsare. The structural problems lead to serious underfunding, which is already being noticed by citizens in many places. Cities urgently need more scope for action, for example by allowing them to take out loans. But, says Broß, loans only offer short-term relief and do not address the underlying problem of structural underfinancing, as baden-baden.de notes.
Current challenges facing municipalities
Communication about the financial situation of cities is essential. There are also worrying trends nationwide: in 2024, the financing deficit of municipalities and municipal associations was24.8 billion euros, the highest since German unification. The expenditure of the municipal core and extra budgets increased by12.6 percentcompared to the previous year, while revenue only increased7.6 percentincreases, according to destatis.de.
A key concern is social benefits, which act as the main driver of spending. In particular, the increased standard rates for social assistance and citizens' money are putting pressure on the municipalities' coffers. The challenges are not just local, but reflect a nationwide pattern that cannot be ignored in Baden-Baden either.
The way forward
What would be the solution? The coming months will show whether those responsible will be able to sustainably improve the financial situation. The Association of Cities clearly demands that the federal and state governments must support municipalities in order to fulfill their diverse tasks. Baden-Baden could serve as an example for many cities that are in a similar situation.
Citizens are called upon to participate in the discussion and express their opinions clearly. Because only together can the city find a way to avoid the financial cliffs. A good hand in financial policy could soon mean that Baden-Baden is back on stable footing.