Wangerland's treasurer sounds the alarm: municipalities on the financial brink!

Wangerland's treasurer sounds the alarm: municipalities on the financial brink!

In Wangerland, the financial situation of the municipalities is getting worse. Treasurer Arthur Wichmann sounds the alarm and warns of structural underfunding that could seriously endanger local self-government. Despite a positive development in trade tax, which is reflected in an amount of almost 5.9 million euros, the overall situation remains tense. NWZonline reports that this follows a nationwide trend where the municipal financial situation is also heavily strained.

Wichmann describes the current financial situation as critical and refers to the alarming forecast that was published by municipal associations at the beginning of August. A record deficit of 24 billion euros is expected for 2024. By 2025, the deficits could even exceed the 35 billion euro mark. The causes lie in rising social spending and personnel costs as well as an impending interest burden trap and stagnating income.

Growing concerns among municipalities

The problems are felt nationwide. A current survey shows that only 17 percent of municipalities rate their financial situation as “good” or “very good”. In comparison, 36 percent described the situation as “poor,” an increase of 8 percentage points compared to previous years. Particularly in cities with more than 50,000 inhabitants, the assessment of the financial situation as inadequate even applies to the majority of 56 percent. [Difu].

The structural problems, particularly in the area of ​​social spending, remain unresolved and are being exacerbated by a weak economy. While important types of expenditure such as personnel costs and material expenses continue to grow unabated, tax revenues stagnate. [Bertelsmann Stiftung](https://www.bertelsmann-stiftung.de/de/themen/aktuelle-meldeen/2025/juli/kommunale-finanzen-groesstes-streit-in-der-geschichte-der-bundes republic) describes that the deficits in 2024 could question the ability of municipalities to act, which is also worrying for social cohesion.

The need for action is urgent

Wichmann urgently warns that without fundamental reforms at the federal and state levels, there is a risk of local self-government collapsing. This could have devastating consequences: dilapidated roads, poorer educational facilities, inadequate fire brigade equipment and fewer cultural offerings. To counteract this, he calls for clever prioritization and transparent decisions to make efficient use of scarce resources.

In Wangerland, most of the budget estimates have been achieved so far, but the municipality is facing major challenges due to the insolvency of Wangerland Touristik. This insolvency could jeopardize the repayment of a loan of 5.9 million euros. In order to take citizens' concerns seriously, consideration is already being given to adjusting the assessment rate for property tax A.

A bright spot in the tense financial situation is the planned use of 346,000 euros from the “Pact for Municipal Investments”, which will enable investments in a new fire department and elementary school in Hohenkirchen. The municipality's priorities are clearly on education, security and infrastructure - concerns that enjoy broad acceptance among the population.

The challenges are great, but with a good hand, Wangerland could not only overcome the current crisis, but also position itself well for the future. In order to achieve this, cooperation between the federal, state and local governments is essential.