Financial Crisis in Germany: Mayors Warn of Imminent Bankruptcy
According to the English section of webangah News Agency, citing Mehr News Agency, the newspaper Bild reported that German mayors have warned most cities in the country are on the brink of bankruptcy. Municipal budget shortfalls are expected to reach €30 billion by 2025.
Thomas Kufen, mayor of Essen and member of the Christian Democratic Union, stated that only 10 out of 396 cities and municipalities in North Rhine-westphalia have balanced budgets. He emphasized that the financial crisis is not limited to former industrial cities.
Kufen added that expenses related to hosting and integrating refugees are major contributors to these deficits.The country’s social welfare model, combined with immigration policies, has placed severe financial pressure on municipalities. In Essen, which initially planned a balanced budget for 2025, there is now a €123 million deficit.
The mayor warned that if this crisis continues, it threatens municipal stability: “Federal government aid for cities is insufficient. When the government can no longer provide basic services, public trust erodes.”
Bild highlighted that growing municipal deficits alongside soaring citizen debts heighten concerns about the future of social welfare and democracy in germany.
