German cities Duisburg and Leipzig face budget challenges

German municipalities in Duisburg and Leipzig are facing significant fiscal challenges as they prepare their dual budgets for 2027/2028.

Duisburg is introducing a budget alongside a budget security concept extending to 2037. The city aims to manage rising social expenditures, personnel costs, and energy prices through savings in material and staff costs, as well as increased revenue from municipal subsidiaries. Despite these pressures, Duisburg's deficit per capita remains below the national average.

In Leipzig, the administration has presented a budget draft showing a structural deficit of approximately 150 million euros per year. The city's ability to pass a budget depends on a special decree from the Free State of Saxony, as rising federal social mandates have strained local finances. The Green Party (Bündnis 90/Die Grünen) has proposed amendments aimed at increasing revenue without incurring additional debt to create room for investment.