Bremen is facing a budget hole: revenues are falling, expenses are rising!

Bremen is facing a budget hole: revenues are falling, expenses are rising!

Mayor Andreas Bovenschulte (SPD) commented on the current economic situation in Bremen, which is characterized by increasing expenses and declining income. The city is faced with the challenge of determining the key figures for the 2026 and 2027 budget. These key figures are to be officially decided on June 17th, as they serve as the basis for the budget plans of the Senate departments. Finance Senator Björn Fecker (Greens) expects that there will be a significant need for discussion on some points.

Bremen has a total of 5.9 billion euros available for 2025. Despite the tense financial situation, the city expects a loss of around 47 million euros for 2026 and around 50 million euros for 2027. Given this financial situation, Bremen is legally obliged to carry out a three-year restructuring program in order to avert a budget emergency. This situation is part of a broader fiscal consolidation aimed at reducing net new debt and ensuring the financial stability of public budgets, as set out, for example, in the EU fiscal compact.

Education spending and social projects

Despite the financial difficulties, investments in education and social projects are planned for the coming years. iPads for Bremen students are to be purchased worth around 14 million euros. In addition, the education budget will be increased by 20 million euros per year in order to better equip the educational institutions. The new strategy also includes equipping newly founded schools in socially disadvantaged districts with school social workers and converting teacher training to a dual training system, whereby practice-integrated training (PiA) will be ended.

The Chamber of Employees assessed the increase in the education budget positively, but criticized the change in teacher training. In health care, medical care centers (MVZ) are to be set up in districts with a shortage of doctors. In addition, the budget provides 5 million euros for a drug assistance strategy to stabilize addiction assistance.

Investments in infrastructure and the labor market

Another focus of budget planning is on improving infrastructure. Bremer Straßenbahn AG (BSAG) is to enter offer level II in order to expand its public transport offering through investments amounting to 8 million euros. In order to finance the expansion of local public transport, measures such as resident parking and expanded traffic controls are planned.

In addition, 38 million euros are to be invested in labor market promotion to compensate for the loss of federal and EU funds. In order to optimize the approval processes, the objection procedure against official decisions should be abolished and the approval fiction should become the norm. The housing obligation for refugees should be lifted so that the city can rent housing and lower standards in shared accommodation.

Overall, the fiscal consolidation in Bremen shows that the city is facing challenges, but is also taking decisive steps to stabilize the economy while at the same time advancing important social and infrastructural projects. The next steps in budget planning will be crucial for Bremen's future financial health.

You can find out more about the basic parameters for the household at Weser courier as well as information on budget consolidation Wikipedia.