Financial crisis threatens large cities: mayors issue urgent warnings!

Financial crisis threatens large cities: mayors issue urgent warnings!

The financial challenges in German municipalities are getting worse. This recently became clear at a meeting of the mayors of the 29 large district towns in Nördlingen. Uwe Kirschstein, mayor of Forchheim, says that the municipal finances are “increasingly getting into a threatening situation”. This alarming conclusion is shared by the other city leaders, who highlight the impressive financial difficulties.

What is particularly striking is the imbalance between stagnating tax revenues and constantly growing expenditure, which particularly affects the large district towns. The mayors pointed out that personnel expenses and social expenses place a significant burden on municipal budgets. This has a direct impact on the district levy that the cities have to bear. In the Forchheim district, for example, the city of Forchheim has taken on the main burden in recent years, making it the largest payer within the district.

Important investments in urban infrastructure, such as in schools and daycare centers, are under discussion due to a lack of financial resources. Kirschstein vehemently points out this problem and warned that some cities have already reached the limits of their debt capacity. This means that long-term planning is at risk and even voluntary municipal offers have to be put to the test.

The initial situation is particularly problematic because the city of Forchheim has gotten into financial difficulties due to the situation at Siemens Healthineers. Kirschstein announced that the city's revenue will likely decline in the future, which could exacerbate an already tense situation. In view of these developments, the mayor voted against an expensive district project that envisaged the construction of a new special education center.

Further discussions revealed the cumbersome preparation of approved budgets for the coming years. The mayors of the major district towns are pessimistic and are concerned about the prospects for municipal finances in Bavaria. The urgent need for reform and substantive action to close the gap between revenue and spending and keep cities on a stable financial path is becoming increasingly clear.

The overarching message is clear: Without decisive measures to resolve the financial difficulties, healthy and sustainable urban development will be increasingly endangered. This complex matter requires urgent solutions to secure both the infrastructure and local self-government. More details on this topic can be found in a detailed report on www.nn.de.