Overview
- The German Association of Towns and Municipalities reports a 2025 financing deficit of about €30 billion, bringing the two‑year shortfall to nearly €55 billion.
- Municipal social‑service spending has nearly tripled since 2007 and is projected to exceed €102 billion in 2027.
- The group proposes an equal split of costs for child and youth services, integration assistance for people with disabilities, and care support between federal, state, and local levels, covering roughly €46 billion.
- Leaders argue the Konnexitätsprinzip is not being upheld, citing unfunded mandates that have already forced construction stoppages and pauses in cultural and community funding.
- The association cites an infrastructure backlog of around €218 billion and seeks inclusion of its plan in the Zukunftspakt and the broader social‑state reform, noting Chancellor Friedrich Merz pledged municipal relief in November.