Before the forthcoming Ministerpräsidentenkonferenz (MPK) in Berlin on Thursday, the leading municipal associations at federal and state level have urged the federal government and the Länder to provide financial relief for cities and municipalities, reports the “Welt”.
“We expect concrete reforms that will truly ease the financial burden on our local budgets” says Burkard Jung, president of the German Cities Association (Deutscher Städtetag). Jung warns that the financial crisis confronting cities is inevitable. “Cities are already cutting services across the board-bus and rail routes, cultural programmes, senior assistance, and sports clubs. These cuts spark intense debates that risk destabilising our democracy”.
Jung estimates that the deficit of local budgets will amount to at least €30 billion this year. “Therefore the federal government and the Länder must secure immediate financial assistance for the municipalities” he says. One proposal is to raise the share of municipalities in the value‑added tax revenue by ten percentage points, from the current 12.8 % to 22.8 %.
André Berghegger, chief executive officer of the German Cities and Municipalities Federation (Deutscher Städte‑ und Gemeindebund), reminds participants of Chancellor Friedrich Merz’s announcement that a “special Ministerpräsidentenkonferenz” on municipal finances would be convened in the first quarter of 2026. “The fiscal position of municipalities is tightening further. We urgently require support from the federal government and the Länder, and we expect the special MPK announced at the end of last year for this spring to take place soon” Berghegger states.
Achim Brötel, president of the German Districts Association (Deutscher Landkreistag), adds: “We now need substantial steps from the federal government and the Länder to limit the sharp cost increases, especially in integration assistance and child and youth welfare. The municipal side alone cannot shoulder these challenges. A shared responsibility is required. Until that is achieved, we also need urgent immediate financial assistance from the federal government and the Länder to overcome the democracy‑threatening crisis of local budgets”.
The representatives of the municipal associations will meet this Thursday in Berlin, invited by the MPK chair and Rhineland‑Palatinate Minister President Alexander Schweitzer (SPD), for a crisis discussion with the leaders of the 16 states.