Munich on debt course: Record debt until 2028 threatens!

Munich on debt course: Record debt until 2028 threatens!

München, Deutschland - Munich faces an alarming financial situation! The city council adopted a household on December 21, 2024, which is heading for a record level of almost 12 billion euros in debt. Despite slightly increasing tax revenue of 9.3 billion euros, there are considerable deficits in spending of around 9.1 billion euros. Mayor Dieter Reiter (SPD) warns: "We are by no means at the end of a necessary change in the budget." In order to escape from this dilemma, the city plans to take on loans of 7.71 billion euros by 2028, which could drive the debt on an alarming 11.67 billion euros, such as Merkur reported .

Despite these gloomy prospects, investments are to be continued in important projects in 2025. The budget recorded planned investments of 3.086 billion euros, for education and social institutions alone will flow approximately 841 million euros. Although the city expects a net debt of 2.143 billion euros, the administration hopes to significantly reduce this trend through consolidation measures from 2028. Mayor Reiter said: "We do not close baths and theaters, the subways continue and now even at night." These investments are necessary to strengthen the infrastructure, such as