Financial situation of the municipalities
Warning municipal associations: “Deficits at a height of never” “
If the money is missing on site, people often notice it immediately. Cities and municipalities are now alarm together.
According to their umbrella organizations, the households of the municipalities face the collapse. “Deficits at a never known height pile up,” says a joint explanation of the German City Day, the German District Day and the German Association of Cities and Municipalities. “The federal financial architecture has completely got out of balance, President Burkhard Jung, Achim Brötel and Ralph Spiegler state.
Above all, rapidly increasing social and personnel costs are troubled by the municipalities. “Increase rates in this area of 10 percent or even beyond grant every household to their knees,” says the explanation.
Emergency households and savings rounds are the order of the day
The associations speak of a “previously unthinkable vault spiral”. The deficit will increase from currently 25 billion euros in core households in 2024 to 35 billion euros in the next few years. “Massive liquidity problems are accompanied by this, the cash credit debt will explode and investments in municipalities and countries will crash,” warn the three associations. The municipal reserves are already fully consumed in many places. Reality in town halls and district offices included deficits, emergency households and hard consolidation discussions.
Demands to the federal and state governments
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The local associations asked the federal states to ensure “tasks -based financial resources” of cities, municipalities and counties. The federal government, which is responsible for a large part of the burdens of the municipalities as legislature, must also make his contribution.
Specifically, the municipalities demand a significantly higher proportion of sales tax at short notice. The municipalities already made significantly more than a quarter of the total state expenditure, but only received a seventh of the tax revenue. Furthermore, the output dynamics in the social spending must be broken. “Often cities, counties and municipalities have to delete sensible voluntary expenditure for sports clubs, public transport or business development because they are legally forced to do other expenses,” said the associations.
dpa
Source: Stern
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