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Kiel in financial distress: 104 million euro deficit threatens major projects!
Financial worries in Kiel: The budget deficit is 104 million euros, major projects are on the brink.
Kiel in financial distress: 104 million euro deficit threatens major projects!
The financial situation in Kiel is creating a tense climate in the town hall. For the coming year, the state capital is expecting a huge budget deficit of around 104 million euros. This situation has brought several council parties to the scene, who are now demanding action. The CDU and the FDP are pushing for planned major projects to be reviewed, while the SSW is questioning projects such as the new Hörnbrücke. The Left and the party are also mobilizing and calling for a stop to the Olympic bid in order to reduce spending. There is a consensus in the council that the city administration needs to become more efficient in order to respond to the strained financial situation NDR reported.
A look at the background to the tense financial situation shows that the challenges exist not only in Kiel, but throughout Germany. According to city treasurer Christian Zierau, the financial situation of the municipalities is dramatic. These contribute a quarter of the state's total expenditure, but only receive a seventh of the tax revenue. A reform is overdue, because Zierau is calling for a larger tax share for the municipalities and emphasizes that the federal government must take action so that cities can be relieved. The challenges have grown enormously, particularly for sub-areas such as integration assistance, care and youth welfare. SHZ illustrates this with clear figures: the Kiel budget will grow in social spending by 70 million euros in the coming year alone.
The consequences of the crisis
The increasingly complex requirements and the legal framework present cities with major challenges. This is also reflected in spending, which has stagnated or, at best, only grown minimally. The deficit that has affected Kiel is part of a widespread problem in Germany. The Bertelsmann Foundation highlights that the financial situation of many municipalities is dramatic due to stagnating revenues and rising costs. The expected budget deficits could worsen in the coming years, meaning that many cities will face massive financial difficulties.
It is very important for Kiel that necessary changes are addressed quickly. The council groups are called upon not to agree to any further cost-intensive measures in order not to further aggravate the situation. City Treasurer Zierau's appeal echoes through the corridors of the town hall: priorities must be reset and expenditure must be resolutely counteracted in order to avoid an impending deficit.