German city and municipal authorities are urging the governing coalition to swiftly and efficiently distribute funds earmarked for infrastructure investment André Berghegger, chief executive of the German Association of Cities and Municipalities, stated that local authorities are facing the most severe financial situation in the history of the Federal Republic of Germany
He highlighted an investment backlog exceeding €215 billion, emphasizing the urgent need for federal investment funds to reach municipalities without delay While welcoming the coalition’s focus on economic stability and job security, Berghegger warned of a potential significant decline in municipal investment – from approximately €45 billion annually to around €30 billion
This reduction, he argues, would severely hamper the ability of cities and towns to address long-term challenges, particularly those related to climate change and necessary infrastructure upgrades The Association is therefore advocating for a substantial portion of federal investment funds to be directed to local authorities
Berghegger stressed the importance of streamlined access to funding, advocating for a simplified, less bureaucratic process He suggested providing municipalities with lump-sum payments, allowing them to allocate resources based on local needs and expedite public procurement processes The Association believes that local authorities are best positioned to determine where investments will have the most immediate and effective impact