Munich on the abyss: Record debt threatens until 2028!

Munich on the abyss: Record debt threatens until 2028!

München, Deutschland - The city of Munich has adopted its budget for 2025, but the financial prospects are alarming. By 2028, astronomical debt of almost 12 billion euros will face, while the planned investment volume remains high despite the tense situation. Mayor Dieter Reiter (SPD) expressed that the city sees on the capital market despite a surplus of 235 million euros and increasing income of 9.3 billion euros on new debts of 2.25 billion euros. According to Merkur's report, the current budget is necessary to maintain future investments in social affairs and education.

In order to cope with the economic challenges, the budget planners have implemented measures to consolidate in the amount of 243 million euros. Nevertheless, the city leaders are planning investments of 3.086 billion euros for 2025, which are intended to focus on important areas such as childcare and housing. "Despite the savings, we continue to invest in the central themes of this city," said Reiter, who also emphasized the continuation of the subway night trips, while at the same time some investments that have already been decided in the tram area and in the cultural area were shortened, as can be read in the report by TZ.

increasing debts and persistent investments

According to the budget submitted, the new debts will probably be 7.486 billion euros by the end of 2025. In view of the prevailing financial situation, the city council did not approved some proposed expenses, which means that the city's debt situation remains tense. CSU boss Manuel Pretzl accused the city government of having led Munich into a precarious situation, which could only be mitigated by unexpectedly high tax revenue. The city had to adjust to a savings course, while at the same time driving large investments to improve the infrastructure. These discussed topics were also taken up in the TZ report.

Overall, the budget for 2025 is approved, but underlines the need for austerity measures in the administration. In the case of a forecast increase in costs through legal compulsory services and price increases as a whole, the pressure on urban finances remains enormous. A look into the future remains tense, while the city continues to pursue big plans.

Further information from Merkur and here at Tz.