German Cities Warn of Severe Financial Crisis as Social Costs Double in a Decade

Rising social spending and insufficient federal support leave municipalities struggling to maintain essential services.

The German Association of Cities reports that nearly all major cities are unable to present balanced budgets due to skyrocketing social expenditures.
Social spending, including childcare, disability assistance, and elder care, has more than doubled over the past decade to €67.8 billion.
Local governments are shouldering 85% of these costs, with limited financial support from federal and state governments, leading to severe budgetary strain.
Cuts to non-essential services like cultural institutions, sports programs, and public transit are becoming widespread, directly impacting citizens' quality of life.
The Association of Cities is urging the incoming federal government to reform municipal financing, including increasing tax revenue shares and addressing legacy debt burdens.