It sounds like a bad joke. Ironically, the district of Starnberg blocked a social policy measure for students and trainees. It comes to the introduction of a 365-Euro Tickets in the Munich transport and tariff Association (MVV). So that is 360,000 young people should be able to use starting in August 2020, all buses and trains in the MVV for only one Euro per day.
Even richer in the district of Starnberg, sees great risks
now, However, the district Council of the district of Starnberg refused his assent to the bargain-Ticket. Reason: The incalculable financial risks through the Corona of a pandemic.
Many mayors would have the “biggest concerns” that the current crisis is tearing huge holes in its coffers, a spokeswoman for the district administrative office Starnberg. They feared that cheap Ticket could be for you at the end of a financial boomerang. Alone in the district of Starnberg, would be the cost of the benefits for young people around 512,000 euros per year.
Even if it sounds like a luxury problem – with his Concerns of the district of Starnberg is not alone.
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Many municipalities are struggling for financial Survival
In Germany, municipalities are struggling just ums financial Survival. Because of the Corona will follow previously agreed-upon spending slashed or stopped altogether, in many places, the budget threaten to lock. Particularly hard-hit municipalities that were able to form any reserves for times of crisis, and instead of a mountain of debt to be crushed. Without state help, they stagger to the abyss.
the President of The German Association of cities, Burkhard Jung, warns: “The Corona pandemic leads in all the towns and cities to major financial burdens: the revenue collapsing, expenditure is set to rise.”
Association of cities: a Drastic drop in the business tax
in Particular, in the case of the trade tax, the main source of income for many cities, threatens to be a Disaster. Finally, many businesses had to close, businesses reduce their production, or the whole set. The result: Hardly any orders in the basement the noise at the end of sales, less taxes for the municipalities.
According to a survey by the German Association of cities are entered in dozens of cities already requests from firms to the trade tax, the advance payments down. Thus, the corresponding revenue is expected to decrease compared to 2019 by more than ten percent. Young, who is also the mayor of the city of Leipzig: “And this decline will be much greater.”
revenue from theatres, museums and transport are missing
But not only in the commercial, income tax and VAT are threatening the municipalities, and painful losses. Other revenues break away. About the revenues from theatres, museums and libraries, local public transport, from the city’s kindergartens, swimming pools or animal parks. Believed to be secure and firmly planned inflows have dried up due to the Corona of a pandemic with a single blow.
Munich’s Lord mayor Dieter Reiter (SPD) said this Wednesday to FOCUS Online: “Alone for public transport, monthly income of us already now in the low two-digit million range. Our swimming pools, theatres and other platforms, city libraries and community College are closed, the cost to run of course. Childcare is exposed, and parents to reclaim manage of your fees for this time.“
local authorities ‘ expenditure increase due to Corona-crisis
meanwhile, the expenditure of the local authorities remain high, in part they will rise even more. Cities and municipalities need to implement many of the measures adopted by the Federal government and the Länder in the Corona of a crisis, such as the easier access to social services.
this will slide in the coming months, nationwide, up to 1.2 million people in Hartz IV. The municipalities, for the payment of the accommodation charge to come to more costs in the billions. For most cities an almost unbearable effort.
SPD-politician Florian Post: “to prevent the protective shield for municipalities,”
the looming collapse of the communes still, not only requires of the cities of Federal aid. “It is now high time for a rescue and protective shield for our local communities,” says the SPD member of the German Bundestag Florian Post from Munich. In a letter to his party colleague and Federal Minister of Finance, Olaf Scholz, he warns: “It is five to twelve!”
most of The municipalities would be “with his back to the wall, many of the eunuchs in front of almost unsolvable tasks”, – stated in the FOCUS Online this Letter. The consequences for millions of citizens are blatantly.
appeal to the Minister of Finance: savings-strapped cities reduce their indebtedness
Post calls, therefore, of the Minister of Finance Scholz, his Plan by the end of 2019 to advance the struggling municipalities to deleverage once. So far, the Union-run Federal States failed in this at the Veto primarily. “From my point of view, this resistance must be abandoned now,” says Post. Overall, the municipal debts amount to EUR 42 billion.
The Bavarian SPD-man, refers to the rights granted to Corona – aid of the state for economic, trade, parent or tenant. However, one should not forget “the most important system-relevant actors, the local authorities,” says Post. It is important that the urgently needed money “flowing very fast” and in an unbureaucratic manner.
Munich, WHETHER rider: Large municipalities, especially
, mayor of Munich Reiter affected the same way. To told FOCUS Online: “It must be by the Federal government, in urgent need of a rescue umbrella for the municipalities and especially the large cities, which is meeting this crisis disproportionately hard.”
The FOCUS of Online In the
