Municipalities call for over 60 billion euros in infrastructure and development funds.
In a bold move, the head of the German Association of Towns and Municipalities, Burkhard Jung, has demanded a hefty slice of the special assets earmarked by the federal government for infrastructure investments, amounting to an estimated minimum of 60 billion euros. Jung believes that the federal states should not try to shortchange the municipalities by playing manipulative games.
Jung argues that the municipalities deserve the "lion's share" of these assets. The federal government must ensure that a "fair share" of the 100 billion euros for the cities and municipalities is included in the federal law on the distribution of special assets. According to Jung, this share should correspond to the municipalities' share of public investments in the respective federal state.
The 100 billion euros planned for the federal states over a period of twelve years, derived from a debt-financed special fund for infrastructure and climate protection by the Union and SPD, are intended to propel investments in these areas. These funds are to be distributed among the federal states using the Königstein key, which takes into account the respective tax revenue and population of the federal states.
Last year, municipalities suffered a staggering deficit of nearly 25 billion euros and carry an accumulated investment backlog of almost 190 billion euros, as reported by Leipzig's Mayor, Jung. "We're facing schools that need renovation, bridges that can't be repaired, and bus lines that need to be discontinued," Jung stated. The municipalities need to receive the "lion's share" of these assets "quickly and easily."
As negotiations between the federal government and municipalities continue, the news of these demands highlights the urgent need for municipalities to boost their infrastructure investments. Last year's deficit and the significant investment backlog underline the seriousness of the issue. Multilevel cooperation, as emphasized at events like Daring Cities 2025, may play a crucial role in aligning local and national interests for the effective implementation of climate and infrastructure investments.
Sources: ntv.de, mbo/AFP | Accounting for approximately 15% of the total content, the enrichment data reveals that the German government is working on legal and procedural reforms to ensure smoother utilization of these special funds, with a focus on eliminating bureaucratic and legal hurdles. These changes aim to accelerate permitting processes and enhance the enforceability of projects. Additionally, events like Daring Cities 2025 serve as platforms for local, regional, and national leaders to collaborate and strengthen climate plans for effective implementation.
The community and employment policies of municipalities should align with the infrastructure investment policies, considering the substantial financial implications for businesses and the local economy. In the light of the estimated 60 billion euros in special assets earmarked for infrastructure investments, it's crucial that municipalities receive their fair share, which corresponds to their share of public investments in respective federal states.
