1 Apr, 10:14··

German cities make record debt.

Der Spiegel

German cities have a big financial problem. They owe 31.9 billion euros. This is because of higher costs and less money.

German municipalities increased their debt by 31.9 billion euros in the past year. Tax revenues went up, but it wasn't enough. The problem is caused by rising costs like salaries and social welfare. Funding for asylum seekers has also decreased. This situation is worrying for local governments.

Summarized from the sources above. Read the originals for the full story.

Highlights

Record Municipal Deficit

German municipalities have a large deficit of 31.9 billion euros.

Increased Debt

German cities took on 31.9 billion euros in new debt.

Rising Costs

Salaries, staff, and welfare costs increased.

Decreased Asylum Funding

Funding for asylum seekers went down.

Revenue Increase, Debt Rise

Tax revenues increased, but debt also increased.

municipal financesocial welfareGermanylocal governmentfinance