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German Cities Demand Fair Funding in Landmark Legal Report

Ex-judge Peter Müller slams the system: cities are drowning in duties but starved of funds. Will this report force Berlin to rewrite the rules?

This is a picture of a city, where there are buildings, trees, poles, roads, vehicles , sky.
This is a picture of a city, where there are buildings, trees, poles, roads, vehicles , sky.

The German Association of Towns and Municipalities (DStGB) has unveiled a significant legal opinion on municipal finance. Presented on Tuesday, the report underscores the constitutional rights of local governments to adequate financial resources. At the heart of the report lies the assertion that local governments have a constitutional right to a fair and minimum level of finance. This stance is championed by Peter Müller, a former judge at the Federal Constitutional Court and ex-Prime Minister of Saarland. Müller argues that federal and state authorities must not impose excessive burdens on municipalities. He criticises the current imbalance between the tasks and revenues at the local level. The report further emphasises that the federal states have a duty to equip municipalities with the necessary funds to fulfil their responsibilities. This, it argues, is a constitutional requirement that is currently not being met. The DStGB's legal opinion, authored by Peter Müller, serves as a reminder of the constitutional rights of local governments to adequate finance. It calls upon federal and state authorities to address the imbalance between municipal tasks and revenues, and to ensure that local governments are not overburdened.

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