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München’s Economic Chief Urges Budget Cuts as Population Set to Surpass 1.8 Million

Scharpf will streamline administration by deploying digital tools and artificial intelligence to reduce costs

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Overview

  • The Planungsreferat forecasts München’s population will exceed 1.8 million by 2030, putting pressure on housing, transport, schools and childcare.
  • Despite record revenues, Christian Scharpf warns that rising expenditures from infrastructure and social services create a revenue gap.
  • The city plans to review and prioritize its portfolio of tasks, potentially eliminating some voluntary services to curb spending.
  • Digitalization and artificial intelligence will be deployed to streamline processes and identify further savings within the administration.
  • Scharpf calls on the federal government to fully fund new mandates such as all-day care in Kitas and primary schools to ease municipal financial strain.