Baden-Baden in crisis: Does the city forest have to pay for the debts?

Baden-Baden in crisis: Does the city forest have to pay for the debts?

Baden-Baden is currently in a bad place, and that has less to do with the weather than with the city's tense financial situation. A shocking 300 million euros of debt is on paper, and the current situation is leaving the city administration struggling to find solutions. What happened? At the end of 2023 alone, the debt was 263 million euros, as First Mayor Wieland explains. At an information event attended by 310 interested citizens, Mayor Dietmar Späth and Treasurer Thomas Eibl were at the microphone and highlighted the city's critical financial situation. SWR reports that additional loans amounting to 32 million euros will be needed in the current year.

The forecast for the deficit for the coming year is anything but optimistic: Baden-Baden will slip into the red by over 40 million euros. And a deficit of 50 million euros is predicted for 2025. These worrying figures not only arouse citizens' interest, but also the city administration's considerations, because the high social spending in recent years has squeezed the budget. A large proportion of the upcoming construction projects will have to be blocked or postponed - however, projects already underway will remain unaffected by this decision.

Discussions about income

One proposal that is under discussion is the introduction of an entrance fee for the urban forest. Forestry office chief Thomas Hauck talks about the requirements that this step could entail. The city wants to generate revenue in various ways while reducing its debt burden. But citizens are skeptical about the possibility of increasing business and property taxes. The information event offered many opportunities to ask questions and this is noticeable in the discourse on site.

It cannot be overlooked that Baden-Baden is not alone. The situation in many cities and municipalities in Germany is dramatic and characterized by similar deficits. In 2024, a deficit of over 13 billion euros is expected in the municipalities, which will profoundly affect not only the cities, but also the municipal structures.

Need for reforms

The structural problems affecting Baden-Baden may not be just temporary. SWR emphasizes that the city council also points out the urgency of reforms and a realignment of municipal financing. Demands for a higher share of sales tax revenue and a solution to the old debt problem are being raised loud and clear in order to avoid new debt in the future.

It remains to be seen whether the city administration and citizens can work together to find a way out of this financial misery. But one thing is clear: the forest is not just for walking, but could also play a role in running the city's finances. In an interplay between reason and creativity, Baden-Baden must now be tackled in order to get to the root of the problems.