Federal officials petition the national government for financial assistance in addressing local financial difficulties
A recent survey conducted by the Baden-Württemberg Municipal Association has highlighted the financial struggles facing municipalities in the region. The survey, which involved 685 member cities and municipalities, revealed that four out of five respondents (81.5 percent) believe that strengthening municipal finances is the most important task for the new federal government.
The survey results do not provide information on specific proposals or measures for strengthening municipal finances. However, the association has suggested addressing the financial challenges faced by municipalities through an active dialogue with the federal government.
The Baden-Württemberg Municipal Association advocates for adjusting federal regulations to allow municipalities greater borrowing capacity and financial flexibility to manage their budgets sustainably. This includes pushing for the federal government to adapt laws to the new financial policy realities so that restructuring aid recipients, like Bremen and Saarland, can also have better debt leeway without jeopardizing aid payments.
Steffen Jäger, the president of the association, stated that municipalities in Baden-Württemberg incurred a deficit of more than three billion euros in their current budgets last year. He also called for immediate talks on reforming the financial relationships between the federal government and municipalities. Jäger believes that the outlook for 2025 is bleaker for municipal finances in Baden-Württemberg.
Almost half of the mayors (47.6 percent) believe that the federal government should align political decisions more strongly with local feasibility and available resources. This sentiment was echoed by Steffen Jäger, who stated that municipalities need a larger share of community taxes.
The new federal government in Germany should address strengthening municipal finances, according to the survey of mayors in Baden-Württemberg. The emphasis on sustainable finance frameworks by institutions in Baden-Württemberg suggests a possible alignment of financial strategy with sustainability goals, but this is not explicitly linked to municipal advocacy in the dialogue with the federal government.
The survey was conducted between May 6 and 9. The surveyed municipal politicians agree that the state should focus on core tasks and public services, with four out of five (84.4 percent) supporting this view. Steffen Jäger, who was not specifically mentioned as participating in the survey, called for immediate talks on reforming the financial relationships between the federal government and municipalities.
[1] Source: Baden-Württemberg Municipal Association [2] Source: Landesbank Baden-Württemberg
- The Baden-Württemberg Municipal Association suggests addressing the financial challenges of municipalities through an active dialogue with the federal government, involving adjusting federal regulations to allow municipalities greater borrowing capacity and financial flexibility.
- Steffen Jäger, the president of the association, believes that municipalities in Baden-Württemberg need a larger share of community taxes and calls for immediate talks on reforming the financial relationships between the federal government and municipalities.
- Almost half of the mayors in Baden-Württemberg believe that the federal government should align political decisions more strongly with local feasibility and available resources, emphasizing the importance of sustainable finance frameworks.
