Bremerhaven is fighting for survival: 95 million euro budget gap!

Bremerhaven is fighting for survival: 95 million euro budget gap!

Financial times are on the brink in Bremerhaven: the city has a deficit of almost 100 million euros this year. Mayor Torsten Neuhoff sums up the serious situation and reports that the budget for 2025 was rejected by the Bremen Senate, which further complicates the situation. In view of this, the Bremerhaven magistrate had to take immediate measures to counteract an impending insolvency. Luckily for the city: salaries would otherwise no longer have been paid in the last quarter of 2023, but this was averted thanks to temporary financial support from the state of Bremen. Neuhoff emphasizes: “Bremerhaven cannot become insolvent because the state has an obligation,” which brings a little hope to the tense situation.

There is currently no approved budget for 2025; the last draft has a gap of 95 million euros. The magistrate is now required to revise this budget. As part of these efforts, not only is a budget security concept for 2023 called for, but the need for savings in the areas of social affairs, education and sport is also emphasized. A controversial topic is the planned savings in family centers, which directly affect many citizens.

Negotiations with the Bremen Senate

The negotiations between the Bremen Senate and the Bremerhaven magistrate are dragging on. Neuhoff criticizes the Senate's assessment that the city is overstaffed and calls for a differentiated view of the personnel structure. Bremerhaven is more dependent on municipal staff than many people assume. At the same time, the city reached agreements with the Bremen Senate on key points in the budget dispute. However, the budget for 2023, which had a deficit of 50 million euros, was not approved before the summer break. In this way, Bremerhaven receives allocations that it would have included later anyway - i.e. not additional money, but a delayed response from the state. The city's financial independence therefore remains questionable.

The situation is not only threatening for Bremerhaven, but is also reflected in a nationwide trend. A current study shows that the financial situation of municipalities in Germany collapsed across the board last year. Tax revenues are stagnating due to a weakening economy, while spending, particularly in the social sector, is growing unabated. Brigitte Mohn from the Bertelsmann Foundation expresses the pessimistic outlook: “The 2024 deficit calls into question the municipalities’ financial ability to act.” This has long-term consequences for social cohesion in cities and communities.

A jolt in local politics

The need to reform local finances is becoming increasingly clear. Neuhoff sees the unfair distribution of funds from the tax equalization and calls for a better position for Bremerhaven. Similar complaints are circulating about the country's central control over budget preparation. In the current situation, it is crucial that the federal and state governments not only recognize the tasks of the municipalities, but also establish clear financing responsibility.

It remains to be seen whether the negotiations between Bremerhaven and the Senate will be fruitful and whether Bremerhaven can maintain its financial identity. The pressure is increasing as both citizens and local institutions wait for clear solutions.

For further information about the current situation in Bremerhaven you can read the reports from buten and within, tagesschau.de and Bertelsmann Foundation track.