Dresden Approves €220 Million Debt to Rebuild Infrastructure

For the first time in 20 years, Dresden will borrow to fund critical projects, including the reconstruction of the Carolabrücke, reflecting broader financial challenges for German municipalities.

The Dresden City Council approved the 2025/2026 budget, marking its first debt decision since 2006, with €220 million allocated primarily for bridge reconstruction.
The Carolabrücke, which partially collapsed in September 2024, is the focus of the borrowing, alongside other infrastructure projects like schools and roads.
The budget reflects a political compromise among major factions, balancing infrastructure investment with minimal cuts to public services such as transportation.
Municipalities across Germany recorded a record €24.8 billion deficit in 2024, driven by rising social expenditures, highlighting the systemic financial strain.
Calls for federal reforms are growing, with demands for increased municipal tax revenue shares and full federal funding for refugee accommodation costs.