Strengthening Municipalities to Address Infrastructure Deficit

The Bündnis 90/Die Grünen parliamentary group calls for using the federal “Sondervermögen Infrastruktur und Klimaneutralität” to address the municipal investment backlog and to financially strengthen cities and municipalities.

• Main action: Propose that €100 billion from the federal special fund for infrastructure and climate neutrality be made available to Länder and municipalities to tackle the municipal investment backlog; demand tax-distribution adjustments, a larger federal share for social spending, strengthening the Gewerbesteuer (trade tax) and a comprehensive Altschuldenhilfe (old-debt relief) for over-indebted municipalities.
• Background and details: The parliamentary text cites a municipal deficit of ~€25 billion last year and a KfW-estimated perceived investment backlog of ~€216 billion (up ~16% year-on-year); criticises the federal coalition (“Schwarz-Rot”) for not earmarking a minimum share of the special fund for municipalities and for policies (corporation tax cut, VAT cut on restaurant food, raised commuter allowance) that reduce municipal revenue; also proposes digital services (a Germany-App), support for foot- and cycle-friendly transport, cultural/community spaces, more Medical Care Centers, modern schools and targeted climate adaptation measures (heat, heavy rain).