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The financial situation of cities, districts and local authorities is dire: in 2025, the local government deficit stood at around 30 billion euros – a historic high, and the trend is upwards. A key cause is rising social expenditure, which local authorities are required to fund under federal law, and where the scope and standards have been continually increased in the past.
Citizens are feeling the direct impact of the local government financial crisis. And it affects many local government services, such as the maintenance of schools, libraries, swimming pools, cultural and sporting facilities, public transport, hospital care, business development and many social services.
Chemnitz is heeding the call from the three leading local authority associations and is taking part in the communication campaign. Large banners and posters will draw attention to the day of action at various locations across the city, for example at the TIETZ, at the junction of Zschopauer Straße and Bahnhofstraße, at the Botanical Gardens, and at the indoor and outdoor swimming pools. The campaign day will also be featured on the City of Chemnitz’s social media channels.
The financial situation of cities, districts and local authorities is dire: in 2025, the local government deficit stood at around 30 billion euros – a historic high, and the trend is upwards. A key cause is rising social expenditure, which local authorities are required to fund under federal law, and where the scope and standards have been continually increased in the past.
Citizens are feeling the direct impact of the local government financial crisis. And it affects many local government services, such as the maintenance of schools, libraries, swimming pools, cultural and sporting facilities, public transport, hospital care, business development and many social services.
Chemnitz is heeding the call from the three leading local authority associations and is taking part in the communication campaign. Large banners and posters will draw attention to the day of action at various locations across the city, for example at the TIETZ, at the junction of Zschopauer Straße and Bahnhofstraße, at the Botanical Gardens, and at the indoor and outdoor swimming pools. The campaign day will also be featured on the City of Chemnitz’s social media channels.
Ultimately, the local government financial crisis does not affect town halls, but the people. When funds are short, it is not streetlights or administrative buildings that are the first to be called into question, but often the services that make life in our town special: libraries, theatres, indoor and outdoor swimming pools, the botanical garden or cultural events. These are not luxuries, but vital components of a vibrant urban community. Citizens must not be made to bear the brunt of structural underfunding of local authorities. That is why the message sent by the ‘Local Authorities at the Limit’ day of action is so important: our towns and local communities finally need reliable and adequate funding.
To put this into some kind of numerical perspective, I would like to add that, in the social welfare budget alone, we are spending 132 million this year – around 23 million euros more than last year. Among other things, this budget covers the costs of accommodation. Youth welfare services also account for a significant proportion of the expenditure. In this area alone, we are expected to spend around 69 million euros this year – following expenditure of around 62 million euros in 2024 – and we have forecasts for the coming years indicating a trend towards over 80 million euros, whilst revenue stands at only around three million euros.
We are also seeing a growing imbalance in the provision of our daily school transport services. Due to the ‘location principle’ – meaning that the local authority in which pupils attend school pays – we are now spending millions on top of the contributions made by parents. The city’s share of the cost of the education travel pass alone now stands at around 3 million euros per year, as the funding allocated by the Free State falls far short of covering the costs. In total, we are now spending over 14 million euros on this sector as a whole. This is money that is no longer available to us for the upkeep and maintenance of our properties. We are counting on reforms – the sooner the better.
The local authorities and their three umbrella organisations are therefore calling on the federal and state governments to:
