Overview
- Dresden has ordered a Haushaltsperre for 2026 that immediately releases only half of planned departmental budgets.
- Mandatory expenses such as social benefits and personnel are exempt in Dresden, while voluntary funding for youth, culture and sport is set at 75% to give partners planning security.
- Dresden forecasts an uncovered shortfall of about €64 million by the end of 2025, expects a larger gap in 2026, and is reviewing a supplementary budget.
- Leipzig introduced a Haushaltsperre after state oversight approved its 2025/26 budget under strict conditions and extended an investment moratorium through June 2026.
- Leipzig froze new projects except for defined priorities such as schools, bridges, disaster and fire protection, economic development and Olympic bid items, citing weaker trade-tax receipts and roughly €100 million in extraordinary social outlays.