European Centre for Research on Federalism

Beiträge zum deutschen Föderalismus [Articles on German federalism]

Die Finanznot der Kommunen

Gisela Färber

pp. 176-192

The situation of the municipal budgets in Germany is desperate. Increasing expenditures for local services and social transfer payments which are regulated by federal law on the one hand and stagnating or  since 2001  even shrinking tax and fiscal equalisation revenues lead to growing deficits. Much more concerning than the increase of the funded local debt are the exploding deficits in the current budgets. All efforts to negotiate a fundamental reform of local taxation have been without success until now. It is not clear until now whether the amalgamation of social assistance and unemployment aid will provide fiscal relief for local budgets.

Suggested citation for this article:
Färber, Gisela 2004: Die Finanznot der Kommunen, in: Europäisches Zentrum für Föderalismus-Forschung (ed.): Jahrbuch des Föderalismus 2004. Föderalismus, Subsidiarität und Regionen in Europa, Baden-Baden: Nomos Verlagsgesellschaft, p. 176-192.