Bavarian Minister-President Söder to Tackle Rising Social Welfare Costs in Two-Day Cabinet Retreat

Söder acknowledges the strain on local authorities. He's committed to finding a fair solution and supporting municipalities, with a final decision expected by October 2025.

, and Administrator

2025 October 28 . 5:03 PM

1 min read

in this picture there are bowls, mugs and spoons in the kitchen sink. Beside to it there are... — in this picture there are bowls, mugs and spoons in the kitchen sink. Beside to it there are bottle, sanitizers, tissues and bowls.

Bavarian Minister-President Markus Söder has announced a two-day cabinet retreat on November 11 and 12 to tackle the state's budget planning. The meeting will focus on rising social welfare costs and ensuring financial stability for municipalities.

Söder acknowledges the strain local authorities face due to escalating social welfare costs. Despite strategic efforts by municipalities, the situation remains severe. Over the past two decades, levies and contributions have surged by approximately 200 percent, making budgeting a challenge.

Söder has pledged financial support for struggling local governments. He aims for a fair and balanced solution in the final negotiations on fiscal equalization. The final decision on this aid is expected by the end of October 2025, following discussions with the top associations of municipalities. The Minister-President stresses that this support is not linked to the 2026 local elections.

During the cabinet retreat, Söder and his team will prioritize research and development, housing construction, childcare facilities, and hospitals in the budget. They aim to maintain solid finances and balanced budgets for municipalities, ensuring effective progress despite the challenges.