"Municipalities Claim the "Lion's Share" in Infrastructure Funds, Demanding Over 60 Billion Euros
Municipalities require over 60 billion euros for necessary infrastructure investments
The president of the German Association of Towns and Municipalities has demanded a significant portion of the 100 billion euros in special funds planned for infrastructure investments. Burkhard Jung believes that municipalities should receive at least 60 billion euros for these investments.
Cities and municipalities are pushing for a substantial piece of the pie from the 100 billion euros allocated for federal states from the special fund, according to Jung. "The federal states should not play tricks and try to skimp on the municipalities' share," Jung told the "Rheinische Post."
The federal government must ensure that a "fair" portion of the 100 billion euros is earmarked for cities and municipalities in the federal law for the distribution of the fund. This allocation should correspond to the municipalities' share of public investments in each federal state, amounting to more than 60%, and potentially even more in several federal states.
However, the investment deficit of cities and municipalities stands at a staggering 190 billion euros. This backlog, according to Leonberger mayor Jung, results from schools that cannot be renovated, bridges requiring urgent repairs, and bus lines that have been discontinued due to the record 25 billion euros' deficit faced last year.
The Union and SPD have proposed a 500 billion euros special fund for infrastructure and climate protection, to be distributed over 12 years, with 100 billion euros allocated to the federal states to spur investments there and in municipalities. The distribution of the 100 billion euros will be based on the Königsteiner key, which considers the respective tax revenue and population of the federal states.
The conflict revolves around the distribution and control of the funds, with municipalities arguing for a substantial and direct share of the 100 billion euros to tackle local infrastructure needs and climate protection projects. On the other hand, the federal government wants to maintain control over allocation, emphasizing centralized planning to align with national priorities. This tension reflects broader challenges in Germany's fiscal policy as the federal government takes on substantial debt to boost the economy and public services.
- The demand for a fair portion of the infrastructure funds from the German Association of Towns and Municipalities, led by Burkhard Jung, is emphasized, especially considering the significant need for investment in local community policies, such as schools, bridges, and public transportation.
- The ongoing debate between municipalities and the federal government highlights the importance of aligned business, political, finance, and general-news agendas in addressing employment policy concerns, as the allocation and control of infrastructure funds can impact job creation and economic development across Germany.
