A stark warning has been issued to the German federal government from the mayors of all 13 state capitals, who are demanding a fundamental restructuring of municipal finances. In a joint letter addressed to CDU leader Friedrich Merz and the state premiers, the mayors paint a picture of escalating financial strain on local authorities, warning that the gap between income and expenditure is widening perilously.
The letter, reported by the Süddeutsche Zeitung, highlights rising social costs and policy decisions – specifically citing the introduction of the Deutschlandticket for public transport – as catalysts for the growing municipal deficit. “The federal government must finally understand: municipalities are at the absolute limit of their capacity” stated Stuttgart Mayor Frank Nopper, the driving force behind the unified mayoral effort. “We simply cannot manage any more.
The core of the demand revolves around a stricter implementation of the principle “who orders, pays”. The mayors insist that any future legislation proposing burdens on municipal resources must be accompanied by full and appropriate compensation from the federal government, a preventative measure currently lacking.
Beyond immediate concerns, the letter advocates for retroactive remediation of past decisions that have contributed to the current crisis. This includes either increasing the municipal share of value-added tax or relieving municipalities of specific tasks. Crucially, the mayors are calling for the federal government and state governments to assume responsibility for existing “legacy debts” – excessive local government loans demonstrably linked to inadequate funding for transferred tasks.
The initiative, spearheaded by Nopper, has garnered broad partisan support, uniting leaders from across the political spectrum. From SPD’s Ulf Kämpfer in Kiel to the Greens’ Belit Onay in Hannover, the unaffiliated Noosha Aubel in Potsdam and FDP’s Dirk Hilbert in Dresden, the unified stance underscores the severity of the situation and the urgent need for federal intervention. Critics may interpret the demands as a politically motivated plea ahead of upcoming elections, but the collective action from such a diverse group of leaders signals a deeper and more pervasive crisis within Germany’s local governance structures, threatening the delivery of vital public services. The response from Berlin will be closely watched, as it will likely shape the future of municipal autonomy and the relationship between the federal government and its regional constituents.