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Saxony Premier Seeks Local Autonomy Over Germany’s Special Federal Fund

Michael Kretschmer wants municipal leaders to decide how billions for hospitals, roads, schools are spent based on community priorities during state leaders’ talks in Berlin.

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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.