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Financial crisis in Baden-Baden: City fights against million dollar hole!
Baden-Baden is struggling with the financial crisis: €65 million in loans needed, austerity measures sought. Mayor falls ill.
Financial crisis in Baden-Baden: City fights against million dollar hole!
The city of Baden-Baden continues to struggle with a significant financial crisis, which is manifesting itself in a huge financial gap. Today the city administration announced that it needs to take urgent measures to bring the strained budget situation under control. The first savings proposals were presented on Thursday, aiming to cover ongoing costs by the middle of the year. The city cannot avoid taking on additional debts amounting to 32 million euros in order to make ends meet until the summer, as swr.de reports.
What is particularly explosive is the Karlsruhe regional council's rejection of a planned additional debt of 34 million euros. Instead, the city only received approval for loans of 20 million euros that had already been planned. An alarming need for credit is forecast for the coming years: an estimated 65 million euros will be needed in 2026 and even 85 million euros in 2027 to keep the budget stable.
Savings measures in detail
The austerity measures presented at the press conference are varied, but far from popular. For example, the distribution of dog waste bags is to be reduced and six playgrounds are to be dismantled. Cemetery maintenance is also to be scaled back, which is sure to be met with little enthusiasm among citizens. The plan is to save a total of around 250,000 euros per year. Further savings in the cultural and construction sectors are expected to be announced in the near future. The first resolutions in the local council are expected on September 29th.
The financial distress is not just a local problem. The Baden-Württemberg Association of Cities draws attention to the fact that the mandatory tasks of the federal and state governments are not sufficiently financed. Ralf Broß, the executive board member of the Association of Cities, emphasizes that the structural problems that burden many municipalities must be urgently addressed. What is particularly worrying is that municipalities bear over 25% of the public budget, but only receive 14% of tax revenue, as baden-baden.de reports.
A widespread problem
The financial bottlenecks in cities are a widespread phenomenon in Germany, as the “Municipal Financial Report 2025” from the Bertelsmann Foundation shows. Tax revenue is stagnating due to a weak economy, while expenditure on personnel, material costs and social services continues to grow unabated. The inflationary tendencies have actually increased the level of expenditure over the long term, which calls into question the financial ability of municipalities to act. Board member Brigitte Mohn calls for urgent state reform in order to secure the tasks of the municipalities and to make a clear commitment to the federal government's financial responsibility. You can find the current report on the [Bertelsmann Stiftung] website (https://www.bertelsmann-stiftung.de/de/themen/aktuelle-melden/2025/juli/kommunale-finanzen-groesstes-streit-in-der-geschichte-der-bundes republic).
The question therefore remains as to how the situation will develop for Baden-Baden and other affected communities. The upcoming resolutions in the local council could be crucial for the city's financial future. One thing is certain: the pressure is growing and the city administration is faced with the challenge of solving its financial problems in a timely manner.