Municipalities are demanding their fair share of the special fund: 60 billion euros!

Municipalities are demanding their fair share of the special fund: 60 billion euros!

The German District Council has sharply criticized the planned measures for the special fund for infrastructure investments. In particular, the current cabinet proposal does not contain the planned fixed quota of 60 percent for municipalities out of the total amount of 100 billion euros that should be available to the states. Managing Director Hans-Günter Henneke described this omission as a negative signal for cities, districts and municipalities. The cabinet is today considering the draft law, which provides a total of 500 billion euros for additional investments in infrastructure and climate protection.

The states are to receive 100 billion euros from this special fund, although the concrete distribution of the funds for municipal infrastructure is to be determined by the states themselves, according to the cabinet proposal. A special feature of the draft is that it takes into account the needs of financially weak municipalities. In the Ministry of Finance's draft bill from last June, however, a minimum quota of 60 percent was mentioned for municipalities, which Henneke considers to be essential for an effective stimulus to growth. He therefore calls for this fair participation to be firmly anchored in law.

Demands of the municipalities

The demands of the municipalities go even further. The head of the German Association of Cities, Burkhard Jung, also demands a “fair share” of the special fund. The municipalities should be entitled to at least 60 billion euros. In view of an investment backlog that, according to current estimates, amounts to almost 190 billion euros, municipalities are of the opinion that they need more than just the 60 billion euros mentioned in order to improve their predicament. Last year they recorded a record deficit of almost 25 billion euros. The most important problems are unrenovated schools, a backlog of repairs to bridges and the reduction in bus routes.

The municipalities are demanding the majority of the 100 billion euros from the special fund and demand that the federal government ensure that a fair share is taken into account in the federal law for the distribution of the special fund for the cities and municipalities. According to municipal estimates, over 60 percent of public investments could flow into the federal states.

Distribution and keys

The funds are distributed according to the Königstein key, which is based on the tax revenue and population of the federal states. The representatives of the municipalities emphasize that the states must not reduce the share of the municipalities. Clear guidelines are required here in order to quickly implement the urgently needed investments in the municipalities' infrastructure.

In summary, the initial situation for municipalities is both challenging and urgent. The pressure on the federal and state governments to do justice to local authorities is increasing, while at the same time the need for a fair share of the special funds is becoming increasingly clear. Daily Mirror and n-tv report urgently on the tense situation and the demands of the municipalities.