Facing a significant increase in expenses, municipalities are expecting an increase in deficits of more than 50 billion euros over the next three years. “The financial situation of municipalities will become increasingly threatening” said the managing director of the German Cities and Municipalities Association, André Berghegger, to the Bild (Tuesday edition).
“In total, the projected deficits for the years 2024 to 2027 will amount to more than 50 billion euros” Berghegger said. For the current year, the municipal top associations expect a financing deficit of 13.2 billion euros, he said.
“According to this prognosis, municipal budgets will also record deficits of a similar magnitude in the coming years” Berghegger said.
He warned that a standstill in many municipalities is looming if the federal government does not intervene. “If it is not possible to improve the financial situation of cities and municipalities, the ability to act on the spot is acutely endangered” Berghegger told the Bild.