Overview
- Thomas Karmasin, head of the Bavarian counties association, says many municipalities face genuine insolvency risk as deficits deepen.
- He notes a €5 billion gap last year that, by mid‑2025, had already been reached again.
- He blames relentlessly rising social expenditure, which he says local budgets cannot absorb long term.
- Counties report service cutbacks, including thinner bus timetables on weekends and to smaller communities.
- Short-term help is sought from the Bavarian state via the upcoming Finanzausgleich talks, while longer-term ideas include shifting tasks across government tiers and pooling support such as school aides.