Overview

• Dresden imposed an immediate Haushaltssperre for 2026, releasing only half of next year’s planned budget after identifying an uncovered shortfall of about €64 million for 2025.
• Mandatory spending on social benefits and personnel in Dresden is exempt, with voluntary youth, culture and sport funding set at 75% to provide planning security.
• All Dresden investment outlays are blocked for now, with releases to be decided project by project, and a supplementary 2026 budget is under review.
• In Leipzig, the Landesdirektion approved the 2025/26 budget under strict conditions, prompting Finance Mayor Torsten Bonew to order a spending freeze and maintain an investment moratorium until the end of June 2026.
• Leipzig bars new construction starts and halts planning except for schools, bridges, disaster and fire protection, economic promotion and Olympic-bid projects, citing falling trade-tax receipts and roughly €100 million in unplanned social costs; major projects such as the former Technical Town Hall renovation and Wilhelm-Leuschner-Platz redesign are on hold.