Overview
- Städtetag president Burkhard Jung urged Chancellor Friedrich Merz and state premiers to approve a municipal relief package at the upcoming minister‑presidents’ meeting.
- He said local deficits could exceed €30 billion this year, with budget failures now reported even in wealthier southern states.
- Entry into emergency budget rules would prohibit spending on services not legally required, including social work grants, sports club subsidies, and city festivals.
- The association points to a structural imbalance in fiscal federalism, noting municipalities carry about a quarter of public outlays but receive roughly a seventh of tax revenues.
- Jung criticized states for passing on only about 60 percent of a €100 billion investment fund to municipalities, which he said has worsened liquidity pressures and forced cutbacks to bus lines, school upkeep, sports halls, and road maintenance.