Rosenfeld in the financial crisis: a deficit of 3.4 million euros threatens!

Rosenfeld in the financial crisis: a deficit of 3.4 million euros threatens!

The city of Rosenfeld is faced with a worrying financial situation. The result budget shows a deficit of 3.4 million euros. Revenues amount to 25.3 million euros, while expenses amount to 28.7 million euros. This represents a dramatic change compared to the previous year, when the budget ended with an increase of almost one million euros. On May 15, 2025, the local council approved the budget for 2025, a postponement of the resolution was rejected, which means that the current financial situation must now be further addressed.

In a broader context, the financial situation of cities, municipalities and districts must be viewed as dramatic. According to that City Day A deficit of over 13 billion euros is expected for 2024, with comparable deficits also forecast for 2025 and subsequent years. These financial difficulties arise not only from temporary crises, but from a structural crisis that is exacerbated by weak growth.

Challenges in municipal financing

Due to legal requirements, cities have to cancel a large number of sensible voluntary expenditures. This puts municipalities in a precarious position as they are simultaneously confronted with the challenges of the old debt problem and the need to avoid new debt. Greater scope for action when carrying out their tasks is essential in order to be able to use the limited financial resources in a targeted manner.

In order to improve the situation, the municipalities are demanding structural changes, such as a higher share of sales tax revenue and appropriate financing of the mandatory tasks that have been transferred to them by the federal government. The main committee of the city council rejects shifting debts into municipal budgets as this could make the situation even worse. In addition, a reform of the debt brake only makes sense if the new scope is actually used to improve infrastructure and education.

The future of cities and communities

The current situation is fundamentally different from previous financial crises, emphasizing the need to act in a timely manner to prevent a fundamental crisis in the welfare state at local, federal and state levels. Many measures discussed in the election manifestos call for compensation from the federal government, as they would otherwise lead to significant loss of revenue.

It is crucial for Rosenfeld and similar cities to face the challenges of the current financial crisis and develop solutions together to restore municipal financial stability.