Mayors warn of impending financial crisis in German municipalities

“We can’t go on like this anymore” – with these urgent words, thirteen mayors from German state capitals are drawing attention to the dramatic situation facing many municipalities. In a joint letter to the federal government, the city leaders describe the escalating financial crisis that is pushing numerous cities to the limits of their capacity. They are confronted with rising social welfare costs, energy prices, and declining revenues. According to the mayors, without swift action from the federal government, a financial standstill is imminent, jeopardizing crucial projects. (welt: 29.10.25)


Mayors demand clear financial relief

The appeal, initiated by Stuttgart’s Mayor Frank Nopper, is directed straight at the federal government. Local authorities urgently need relief, as new legal requirements without corresponding financial support are further exacerbating the situation. Nopper emphasizes that cities are “at the limit of their capacity.” The letter demands that every new political decision must henceforth include fair compensation for local authorities to prevent impending budget crises.

"We can't go on like this anymore" - in an urgent letter, mayors are demanding financial assistance from the federal government to address the financial crisis facing municipalities.
“We can’t go on like this anymore” – in an urgent letter, mayors are demanding financial assistance from the federal government to address the financial crisis facing municipalities.

Furthermore, the mayors are demanding compensation for the financial burdens already incurred. “Those who ordered services without paying for them must now make amends,” the letter states. With this, they are expressing a central criticism: the federal government has transferred numerous responsibilities to the municipalities without providing sufficient funding. This is leading to ever-increasing deficits, particularly in the social and education sectors.

Municipalities caught between rising costs and empty coffers

According to research by the “Süddeutsche Zeitung,” the mayors see the primary responsibility lying with the federal government. Frank Nopper emphasizes that many cities are forced to postpone investments in schools, transportation, and infrastructure. The financial crisis is affecting not only major cities but also medium-sized towns, whose revenue from business taxes fluctuates considerably.

Despite support from individual states, the situation remains critical. Municipalities are struggling under rising social spending, growing administrative costs, and declining tax revenues. This combination is plunging many city administrations into an acute budget crisis, which in the long term threatens municipal self-governance.

Appeal for a lasting financial reform

The mayors are urging a structural reform of the financial relations between the federal government, the states, and the municipalities. Only a stable and equitable financial system can secure the cities’ ability to act. Without sufficient funds, it is impossible to address future challenges such as digitalization, education, and infrastructure.

According to Stuttgart City Hall, the appeal is to be officially published on Wednesday. The joint action of all 13 state capitals underscores the urgency of the situation. This unity among the mayors demonstrates that the problems are no longer isolated regional cases, but rather a structural warning signal for the entire country.


Federal Government Must Take Responsibility

The authors of the urgent letter make it clear that the federal government must act now. Without additional funding, many municipalities face gridlock. The cities need planning security and fair framework conditions to reliably fulfill their responsibilities.

“The municipalities are absolutely at their limit,” emphasizes Frank Nopper. His statement, “We can’t do it anymore,” perfectly sums up the mood of many mayors. The joint appeal from the mayors is emphatically directed at the political leadership in Berlin – demanding a real financial turnaround before municipal infrastructure completely collapses.

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