Community in need: 35 billion euros owe our cities!
Community in need: 35 billion euros owe our cities!
The financial challenges of the municipalities in Germany are more pressing than ever. According to a current report by the city administration of Saarbrücken , report that the municipalities have had a difficult year. The upcoming year 2024 will be shaped by a drastic increase in social costs. In order to be able to fulfill their mandatory tasks, many cities are forced to take up new loans.
The nationwide old debts of the municipalities amount to around 35 billion euros. These enormous liabilities in particular burden the municipalities in North Rhine-Westphalia, Rhineland-Palatinate, Saarland and Hesse, where the old debts can be even higher. The challenges are exacerbated by a progressive structural change, falling tax revenue and rapidly increasing social expenditure. Missing solutions to this problem could have serious effects on the cities' infrastructure, including schools, streets and daycare centers.
Action alliance "For the dignity of our cities"
In this critical situation, 71 municipalities from eight federal states have come together in the "for the dignity of our cities". Among the members are important cities such as Bochum, Duisburg, Frankfurt am Main, Gelsenkirchen, Kaiserslautern, Mainz and Wuppertal. Almost ten million people live in these cities who are directly or indirectly affected by the financial restrictions. The municipalities demand that the federal government take a more active role in reducing the financial burdens and creating a more stable basis for future investments. Further information on this topic is available on www.fuerdiewuerde.de
Federal Finance Minister Olaf Scholz has also made proposals to provide support to the municipalities concerned. In a clearly critical context, it is emphasized that the old debts should be outsourced to a fund. Managing Director Gerd Landsberg from the City and Community Association supports this idea. At the same time, however, there are concerns that a debt relief should not be rewarded and therefore strict requirements have to be introduced.
The need for faster solutions
The discussion about municipal finances continues to be accompanied by complex regulations and different state building regulations. A total of 16 building regulations and 20,000 regulations exist in Germany, which can not only be confusing, but also frustrating for the municipalities. Delays for significant infrastructure projects, such as setting up radio masts for 5G, show these challenges clearly: In Germany, this process can take up to 18 months, while in countries like China within a day and in South Korea it is complete within two weeks.
In view of these circumstances, it remains to be seen how the financial situation of the municipalities will develop. The need for action is evident, especially in order to secure the quality of life in the cities concerned and break through the spiral of debts.| Details | |
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