Municipalities and states in Germany are grappling with significant financial difficulties. In Löhnberg, the council rejected the appointment of a state commissioner, opting instead to bolster the finance department or hire an external agency.
Mayor Frank Schmidt has applied for early retirement, and measures like raising multipliers and daycare fees have been initiated to consolidate the budget. The regional council approved liquidity loans up to four million euros, contingent on budget consolidation, with the 2018 financial audit scheduled for January 2025. Similarly, Hessen's financial situation is dire, with a nine billion euro deficit projected due to stagnating tax revenues and increased personnel costs.
Finance Minister Alexander Lorz advocates for a stringent austerity plan, facing criticism from Green and FDP factions. In Frohburg, the new city council faces a budget freeze due to a one million euro shortfall, although essential projects like road construction and bus stop upgrades will proceed.
These instances highlight the broader economic strain on local and state governments.
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