North Rhine‑Westphalia cities face record €11 bn deficit and spending cuts

German municipalities in North Rhine‑Westphalia (NRW) recorded a deficit of about €11 billion last year – roughly 35 % of Germany’s total municipal shortfall. The crisis is attributed mainly to rising social‑welfare costs and the exhaustion of previous savings options. Seventy‑three cities from eight states, grouped in the alliance “For the Dignity of Our Cities”, warn that residents are already feeling the impact: higher parking fees, newly introduced bed taxes for hospitality businesses, increased property and trade taxes, more speed‑camera installations and deteriorating infrastructure. Notable projects have been halted, such as the planned new opera house in Düsseldorf.

Political leaders are pressing for emergency measures. The alliance calls for an immediate one‑third reduction of social‑welfare spending by the federal and state governments. The SPD and the governing coalition argue the state must transfer more tax revenues to municipalities, while the Greens urge the federal government to assume half of the historic municipal debts. The upcoming state budget will address these demands.