Municipal Finance Crisis in Germany Highlights Urgent Calls for Reform
German municipalities are facing a financial crisis, prompting some districts to take their cases to the Federal Constitutional Court. Rising costs due to COVID-19, migration, and the energy crisis have created significant deficits, with districts like Mansfeld-Südharz anticipating a shortfall of 42 million euros. Local leaders are advocating for reforms and exploring legal action to secure minimum funding necessary for required public services. With the topic gaining traction in the upcoming election campaigns, parties are proposing various solutions, including changes to fiscal policies and tax reforms.
