Aktuelle Lage der kommunalen Finanzen: Konjunktur löst Strukturprobleme nicht

Abstract

The enduring positive economic cycle in combination with additional federal transfers has brought about a complete recovery of municipal finances. However, this hides the remaining structural problems in tax revenues, reserves, social and capital spending and cash credits. The large backlog of (socially) weak municipalities remains. At the same time, those municipalities face a particular risk of economic slowdown.