Mainz in financial crisis: budget draft rejected – what comes next!

The Supervision and Services Directorate (ADD) in Trier has not approved the city of Mainz's budget for 2025, which is leading to a significant restriction on the city's financial flexibility. Mayor Nino Haase and Head of Finance Günter Beck expressed disappointment with the decision. Mainz has benefited from high trade tax revenues from the company BioNTech in the past two years, so an over-optimistic budget was passed for 2024, which now leads to the need for a supplementary budget.

The ADD had already determined last year that the city was no longer financially capable. In January 2025, the city council passed a budget with a planned deficit of over 130 million euros without increasing property tax B. The ADD is now expecting a revision of the draft budget. Mainz is now severely restricted in its spending; only compulsory expenditure in the social sector can continue to be made. Separate applications are required for projects such as building a new bike path.

Reactions of the city council factions

The Kenya Coalition partners in the city council were informed of the ADD's decision on Wednesday morning. CDU parliamentary group leader Ludwig Holle announced that they would discuss austerity measures and possible sources of income, including an increase in property tax B. Daniel Köbler, parliamentary group leader of the Greens, said that all proposals to improve the revenue situation would be examined and an increase in property tax B was not ruled out. SPD parliamentary group leader Jana Schmöller also said that the ADD's decision was expected and that discussions about property tax B are urgently needed, but care should be taken to ensure that the burdens for citizens remain bearable.

In addition, it became known that the ADD also did not approve the supplementary budget of the city of Mainz. Head of Finance Günter Beck explained that there was no alternative to correcting the course because the city had to review all expenditure. The city generated high trade tax revenue of over one billion euros from BioNTech in 2021 and 2022. Given BioNTech's lower profits, a budget deficit of around 90 million euros is expected for the current year.

The supplementary budget was passed by the Mainz city council in June, but the ADD complained that the city had failed to name measures to cover the deficit in the supplementary budget. Constructive discussions have already taken place between the city of Mainz and the ADD. The city must now submit proposals to improve the budget situation and examine all projects and investments for possible funding cuts or delays. An increase in the trade tax assessment rate to pre-Corona levels is considered necessary because the current trade tax assessment rate in Mainz is 310 points, the lowest in Rhineland-Palatinate. Demand for the BioNTech vaccine has decreased, which has a negative impact on the fiscal situation. In addition, discussions have already begun about a new coalition in the Mainz city council in order to solve the budget problems. A possible Kenya coalition made up of the Greens, CDU and SPD is being discussed.