Three years of self-made recession have left their marks, especially in the once highly industrialized state of Saxony. The Saxon Association of Cities and Municipalities has reported that the financial situation of Saxon municipalities is as bad as it was in the early 1990s.
Many municipalities are now struggling in budget negotiations, with the list of cuts to expenses growing longer. For instance, the city council of Reichenbach in Vogtland recently approved the decision to cancel the traditional Bürgerfest, which was to take place around the German Unity Day on October 3, 2026, citing organizational problems and a lack of funds. The city’s budget for 2025 is already in place, but it’s said that “hardly any new investments are possible and we need to think about voluntary services” due to the strained financial situation.
The city of Aue-Bad Schlema has also decided not to hold a traditional city festival this year, citing the municipality’s tight financial situation. The festival would have cost around 180,000 euros.
In Kamenz, the city has already taken the city’s strained economic situation into account when planning the 800th anniversary of the city, stating that “it’s only natural that the whole event cannot be solely financed through donations and sponsorship.” The city believes that the host, the city of Kamenz, should not hold back and expect others to cover the costs.
Festivals are among the voluntary tasks of municipalities, but if the financial situation worsens, the Saxon Association of Cities and Municipalities warns of difficult decisions ahead for the municipalities. “Apart from possible cuts in mandatory tasks, voluntary tasks and services will be in the focus” the association said, adding that “cuts in subsidies to institutions or in funding for associations may be threatened.” “That’s not what anyone wants and yet it may be necessary to ensure a effective budget.”
As of September 30, 2024, a deficit of over one billion euros had already accumulated in the municipalities. “Cities and municipalities need a significantly better financial allocation, with higher general grants” the Saxon Association of Cities and Municipalities emphasized. The Free State of Saxony, too, is struggling with its budget, with the government’s draft budget scheduled to be released by March 24.
Since the end of last year, looming cutbacks have been causing concerns for cultural institutions in Saxony, with theaters, museums and event planners worrying about their existence.