"Towns and Cities Cry Foul Over Infrastructure Funding"
Local Administrations Insist on Aggregated Investment Amounting to Over 60 Billion Euros
The German Association of Towns and Municipalities (GATM) is up in arms, demanding a substantial portion of the special funds earmarked for infrastructure investments by the federal government, estimated at a whopping 60 billion euros. The GATM, led by President Burkhard Jung, argues that the funds are vital to addressing the significant investment backlog faced by cities and municipalities.
Jung sternly warned against the federal states hoarding funds, stating, "We need the lion's share of the special fund." He elaborated that the federal government should ensure a "fair share" of the 100 billion euros is allocated to the federal law for distributing the special fund to cities and municipalities. This share, he believes, should represent the municipalities' share of public investments in their respective states, equating to more than 60% and potentially much higher in certain states.
The 100-billion-euro special fund for infrastructure and climate protection, planned by the Union and SPD, is intended to be distributed among the federal states over the course of twelve years, strengthening investments in both federal states and municipalities. The funds will be disbursed according to the so-called Königstein key, which takes into account each state's tax revenue and population.
Last year, municipalities grappled with a massive 24.9 billion euro deficit and have an accumulated investment backlog of nearly 190 billion euros, a situation that has led to the deterioration of school buildings, unrepaired bridges, and discontinued bus lines, according to Mayor Jung from Leipzig. The municipality's plea is for quick and uncomplicated access to their "lion's share" of the fund, ensuring they can deal with these pressing issues.
While the general budget plans of Chancellor Friedrich Merz's government focus on reviving the economy and upgrading infrastructure, the specific dispute surrounding the division of infrastructure funding shares between the federal government and towns and municipalities goes largely unreported in these search results. Such disputes typically revolve around the equitable allocation of federal funds, with municipalities advocating for a larger share to meet local needs, versus federal priorities and budgetary constraints.
Source:
- ntv.de, mbo/AFP
Keywords:
- Municipalities
- Deficit
- Infrastructure Investments
- Special Funds
- Public Debt
Additional Insights:
There is often a dispute between the German Association of Towns and Municipalities and the federal government regarding the division of federal special funds for infrastructure projects, with the latter usually prioritizing budget priorities and fiscal constraints over equitable allocation.
- The German Association of Towns and Municipalities (GATM) urges the federal government to prioritize the "community policy" by ensuring a fair share of the 100 billion euros special fund for infrastructure and climate protection, addressing the significant investment backlog faced by cities and municipalities.
- As municipalities grapple with a massive deficit and an accumulated investment backlog, town mayors are keen on "investing" in necessary infrastructure improvements, advocating for quick and uncomplicated access to their "lion's share" of the special fund to deal with pressing issues like deteriorating school buildings, unrepaired bridges, and discontinued bus lines.
