KAPUT: ‘Almost every German city is now on the verge of bankruptcy.’

Mayor Kufen stressed that the crisis is universal, affecting municipalities regardless of their location: “What’s new is that all cities have their backs against the wall,” he told Bild newspaper.

He warned that “budget freezes would now have to be imposed everywhere,” including in many cities previously considered wealthy.

Kufen emphasized the need for a national discussion on affordability: “We have to talk about what we can do so that our welfare state itself does not become a social case. This means: What do we want to afford and what else can we afford?”

However, he noted that cities cannot make these crucial decisions themselves; only the federal government can

Kufen illustrated the crisis with figures from his own city, Essen, which has a population of nearly 600,000. The city had planned a balanced budget for 2025. “But instead of a slight increase of €1.7 million, we currently have a deficit of €123 million,” he calculated.

Once again, refugee accommodation and integration are near the top of the list for reasons why the city is seeing a budget shortfall. Far from being a solution to Germany’s budget and pension crisis, they have become a massive financial burden for the country, costing at least €50 billion a year in social integration, housing, and benefits.

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