Economic expert Achim Truger accused the current federal government of disregarding the severe financial crisis facing local authorities, citing a record deficit of 32 billion euros accumulated by cities and municipalities last year. Speaking to the “Neue Osnabrücker Zeitung” (noz), Truger warned that the federal government appeared self-sufficient and ignoring how stringent spending cuts are creating problems elsewhere.
According to the economist, local communities have been running into extreme financial difficulties for the third consecutive year. This strain is forcing drastic measures, including the closure of swimming pools, allowing essential infrastructure to suffer neglect, and substantial staff reductions.
To prevent a potential collapse, Truger urgently called for a complete financial redistribution favoring local governments. He noted that these municipalities are particularly struggling with rising social costs associated with refugees and declining revenue from trade taxes. He suggested that a viable solution would involve granting local governments a larger share of Value Added Tax (VAT), distributing these funds in a way that specifically boosts the poorest communities. Given the depth of the financial problems, he concluded that mere savings are not enough, making genuine solidarity and intervention from the federal government absolutely necessary.