German municipalities demand 65 billion euros in additional federal funding

The Association of German Cities and Municipalities is calling on the federal government to increase allocations from special assets by 65 billion euros. André Berghegger, the association's managing director, stated that these funds are urgently needed to address an investment backlog of 231 billion euros, particularly regarding schools, roads, and hospital climate adaptation.

Separately, a new capital financing agreement for Berlin covering the period from 2028 to 2037 will see the federal government transfer approximately five billion euros to the city. This includes 2.1 billion euros for security costs related to constitutional organs and embassies, and 2.9 billion euros for cultural funding. The increase in cultural subsidies has drawn criticism from political figures like Friedrich Merz, who questioned the federal government's role in funding culture, which is traditionally a state-level responsibility.