The financial situation of Brandenburg's municipalities is getting worse

According to the Brandenburg municipalities, the financial situation is becoming increasingly precarious. “Potsdam shows how dramatically the situation is getting worse,” said the managing director of the Association of Cities and Municipalities, Jens Graf, to the German Press Agency. Potsdam will certainly not remain an isolated case. “We also fear that the financial situation of the districts will have an impact on the municipalities.”

The state capital Potsdam had imposed a budget freeze in view of increasing social spending and impending liquidity problems. The district administrators, mayors and representatives of the municipal associations are discussing today with Interior Minister Jan Redmann (CDU), Finance Minister Daniel Keller and Social Affairs Minister René Wilke (both SPD). This will probably involve finances, hospital reform and the emergency services.

Household lockdowns in several districts

Potsdam has initially blocked five percent of cash expenses for goods and services and other expenses. Statutory payment obligations such as social benefits, contractual obligations from before October 1st and payments to the company for rent, operating costs and subsidies are excluded.

According to the district council, the districts of Barnim, Havelland and Potsdam-Mittelmark have imposed a budget freeze this year. The Oberhavel district put a partial (limited) lockdown into effect. Last year, the Ostprignitz-Ruppin and Elbe-Elster districts announced a budget freeze.

The double budget for 2027/28 stipulates that, according to the Ministry of Finance, the municipalities should receive around 250 million euros more in the so-called financial equalization compared to 2026.