Hamburg's public companies must prepare for a consolidation course. In view of impending losses and a foreseeable high need for subsidies from the budget, Finance Senator Andreas Dressel (SPD) is demanding a contribution from all municipal companies, especially from those that have so far made a profit. Savings could be made, among other things, in personnel, but at the same time Dressel does not rule out higher burdens for the company's customers.
Hamburg's extensive urban economy includes the municipal housing company SAGA, the municipal transport company Hochbahn, the Hamburg energy works and Hamburg Wasser. The investment report takes a closer look at 107 companies including their subsidiaries; In total, the city directly and indirectly holds around 370 investments.
The 107 companies considered added up to around 500 million euros in 2025. However, the result has more than halved within a year: in 2024 it was still 1.04 billion euros. And the prospects are getting worse.
HGV, the municipal holding company, plays a key role in the future financial situation. Most of the investments are bundled in it. Profits from one company can offset losses from others. Extraordinarily high Hapag-Lloyd dividends have provided HGV with a buffer worth billions in recent years. From this cushion, the holding company can initially offset the now expected deficits without needing additional money from the Hamburg budget.
But the buffer melts quickly. For 2026, the HGV expects a loss of around 519 million euros, and in 2027 and 2028 there will also be a shortfall of more than 500 million euros. These deficits can initially be offset from the accumulated Hapag-Lloyd billions. In 2029, the cushion will no longer be enough for the first time: with an expected deficit of 606 million euros, the city would have to add 457 million euros from the budget according to current planning.
“The good thing is that we have now, so to speak, bought ourselves a bit of time with the Hapag-Lloyd billion,” said the Finance Senator. The coming year and the year 2028 should be used to reduce the gap expected for 2029. It is not yet clear how large the individual companies' contribution should be. This is currently being discussed in the Senate Commission for Public Enterprises. However, Dressel made the direction unmistakably clear: “Everyone has to make a contribution in terms of earnings.” Companies with losses should reduce their losses. But companies that are already making profits should also get more out of it.
Dressel mentioned joint services from several companies, more efficient processes, digitalization, automation and artificial intelligence as possible adjustments. Personnel planning should also be put to the test. If five positions become vacant, a company would have to ask itself whether all five actually need to be filled or whether four employees will be enough in the future. “Nobody in any area of responsibility can tell me that they wouldn’t have a chance to have their work processes checked again,” said Dressel.
However, the fact that public companies are making losses does not necessarily mean that they are doing poorly. According to Dressel, the deficit on the elevated railway, for example, has risen from less than 100 million euros to around 300 million euros. A key reason is the expansion of local public transport ordered by the city. At the same time, Hamburg's companies are making large investments - also desired by the Senate. In 2025 they invested a total of 4.3 billion euros, of which 1.11 billion euros were in local transport and 1.06 billion euros in energy supply.
Customers and users of public companies could also be involved in the consolidation. When asked about higher income through fees, for example, Dressel said that “customers and users cannot be excluded”. In any case, fees are regularly adjusted according to cost developments. Among other things, he cited garbage fees as an example. However, the burdens would have to remain proportionate.
The Taxpayers' Association, on the other hand, is calling for efforts to be made within public companies first. “Before services are restricted or citizens are burdened more, the Senate must ensure order in its own area of responsibility,” explained Hamburg state chairman Sascha Mummenhoff. Among other things, the association points to massive cost increases in investment projects by municipal companies and calls for greater control.
The CDU also sees a significant need for action. Your financial expert Thilo Kleibauer criticized, in addition to the HGV's increasing losses, the growing debt and the strong increase in personnel in public companies. The number of employees in the companies examined rose by 6.9 percent to 84,555 within a year. The development “is more than in need of explanation and requires a critical analysis,” said Kleibauer. He accused the Senate of being “completely overwhelmed” with the management of its corporate investments and called for more effective risk management.
