Kommunalfinanzen ohne Spielraum: Entstehungsgeschichte einer Haushaltskrise

Although municipal revenues in Germany continue to rise, cities and municipalities are incurring debt as never before. This is because expenditures have risen disproportionately – specifically, personnel and social transfer costs have increased sharply in recent years. At the same time, the scope for independent action available to municipalities is shrinking, as their operational activities are becoming increasingly subject to legal regulation. Furthermore, the share of municipal investment within total expenditures has more than halved over the last few decades. It is high time to revitalise municipal self-government in Germany – effectively, sustainably, and nationwide.