Bert Rürup: Alte Steuer, schlechte Steuer
Die Gewerbesteuer wurde Ende des 19. Jahrhunderts eingeführt. Angesichts von Internet, Digitalisierung und Künstlicher Intelligenz wirkt die Kommunalsteuer heute aus der Zeit gefallen.
Düsseldorf reports on the alarming state of municipal finances, where roads remain unsanitized, schools await urgent upgrades, cultural offerings are throttled, and swimming pools closed. Voluntary services that enhance citizen quality of life face cuts. While the federal government secures financial room through special reserves, many cities and communities fear their ability to act.
Since 2023, most cities and communities have reported red numbers after ten fiscally sound years. The deficit in the previous year surpassed the previous record of 2024 by a significant margin, reaching 31.9 billion euros. Notably, 7.5 percent of municipal spending was not covered by regular revenues, casting doubt on the resolution of this crisis.
The root cause of this predicament is the accelerating growth of municipal expenditures outpacing revenues. Personnel costs rose by 6.8 percent in 2025, social expenditures by six percent, and interest expenses by 13.5 percent. In the previous year, total expenditure growth surpassed twelve percent, while in 2023, it exceeded nine percent.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
