US EditionThe Chief Executive Officer of the District Congress Hans-Günter Henneke on the Financial Crisis of the Municipalities
4 Articles
4 Articles
In 2024 the municipalities in Germany recorded a historical deficit of almost 25 billion euros. The reason for this is a sharp increase in expenditure. Cities and municipalities are pushing for higher allocations from the federal and state governments.
Hans-Günter Henneke, Chief Executive of the Landkreistag, considers social cuts inevitable. Otherwise, the decline of the municipalities cannot be stopped.
By Anke Mücke Municipalities in the county are also complaining about a lack of financial flexibility and tight budgets. The recently announced financial injection from the state of Lower Saxony seems to have come at just the right time. The county, cities, and municipalities are to receive ten million euros from the investment pact. But is the money even enough to sustainably plug some of the budget gaps? Or is the sum of millions ultimately ju…
"Investing, reforming, consolidating" - this is how Finance Minister Lars Klingbeil (SPD) would have described the federal budget in 2026. From 2027 onwards, austerity measures should be applied. The German Landkreistag immediately spoke with linguistic criticism. Klingbeil had a wrong understanding of consolidating, according to Chief Executive Officer Hans-Günter Henneke, opposite the "FAZ".
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