Overview

• Kretschmer proposed that mayors, district chiefs and municipal councils allocate funding independently of federal grant guidelines.
• The government’s special fund, valued at several billion euros, is aimed at financing hospitals, infrastructure and education.
• Burkhard Jung of the German Association of Cities estimated a €25 billion shortfall in municipal budgets nationwide and urged rapid implementation of the fund.
• Under Kretschmer’s chairmanship, state premiers will review new financing instruments for federal and state collaboration at the Berlin conference starting Thursday.
• The call for devolving fiscal authority reflects growing concern over German municipalities’ mounting financial crisis.