Stuttgart in crisis: cuts and planning stop affect 16,000!

Stuttgart in crisis: cuts and planning stop affect 16,000!

Things are getting serious in Stuttgart: Mayor Frank Nopper has presented the draft for the double budget for 2026/2027, and the focus is now on measures to restructure the budget. Due to declining trade tax revenue, the city is planning to significantly reduce the voluntary Stuttgart allowance for more than 16,000 employees, which will be halved in the future. These drastic steps are necessary to get the ailing budget situation under control, which has a deficit of around 890 million euros for 2025. The earnings budget for 2026 also shows bleak prospects with a loss of 487 million euros. A deficit of 303 million euros is expected for 2027. [esslinger-zeitung] reports that the city is planning far-reaching savings.

But what does this actually mean for the people of Stuttgart? Nopper emphasized that the challenges also entail a restructuring of the city's properties. As part of these measures, the old Kaufhof will be converted into an administrative center, which will increase the efficiency of the administration. The sales of three municipal buildings are also planned.

Investments on the brink

Not only are savings being made on allowances, restraint is also required when it comes to future investments. Investments are to be slowed down over two years, which will have a particular impact on infrastructure. There will be up to 25 million euros less than originally planned for local transport. The city is now planning annual investments of around 600 million euros, with the focus on maintaining dilapidated bridges, roads and cycle paths. For example, 169 million euros are earmarked for urgently needed measures, and money is also planned for schools and refugee accommodation. Overall, the city could better meet the challenges of the time, as [stuttgarter-nachrichten] reports.

Although the city of Stuttgart has the right to self-government, the burdens of falling revenue mean that its financial sovereignty is being put to the test. The situation has been relatively stable in recent years, but now the city is forced to take out loans to cover ongoing obligations. In order to improve the budget situation, the concept also envisages the introduction of new sources of income, including a bed tax and higher resident parking fees. Daycare fees could also rise to compensate for the additional expenses. The draft budget was supported and helped to shape the major parliamentary groups in the Council, i.e. the CDU and the Greens.

Stuttgart's finances are at a critical point. In view of the challenges, it is all the more important that the city, together with its citizens, looks for solutions in order to get back on a positive path in the future. While the measures are being implemented quickly, it is hoped that the impact on the population will remain manageable and that the city can make the best possible use of its options to achieve financial stability. For a city like Stuttgart, which is characterized by its diversity and dynamism, such measures are more of a necessary evil - but perhaps the first step towards getting back on your feet in the long term.