Leipzig's budget in crisis mode: Financial risks press the negotiations

The current budget negotiations of the city of Leipzig are under a bad star, since the financial risks are now estimated at up to 110 million euros. One of the main reasons for this worrying situation is the still unresolved Financial Effect Act (FAG) in the Free State of Saxony, which was not adopted by the previous state government. So far, the current government has created no clarity, and this uncertainty has been beating on municipal households.

Another problem is the constant rising social spending, which are often not sufficiently financed by the federal and state governments. This represents an enormous burden for the city. The administration is forced to reject many amendments to the city council groups, since there is hardly any financial scope available. Function Mayor Torsten Bonew explains that many of these applications would make sense, but the current financial situation does not allow any additional expenses.

In order to ensure the financial stability and quality of life in Leipzig, it will be crucial to achieve a balanced and approved budget. If this goal is not met and the budget is not approved by the Free State, the city is faced with a budgetary procedure. In this case, new borrowing and investments would be impossible, grants for cultural and sporting projects would be suspended, which would have far -reaching consequences for city life.