Eleven Million Euros Approved - City Employees' Salaries and Christmas Bonus Secured - Rostock’s €11 million bailout saves salaries after budget blunder
Rostock’s city council has approved an extra €11 million in emergency funds to cover a shortfall in staffing costs. The unexpected expenses arose from miscalculations in the 2024/2025 budget, leaving salaries and bonuses at risk until year’s end. Mayor Eva-Maria Kröger admitted the error was due to overly optimistic financial planning.
The budget for 2024/2025 was set in 2023 using projections rather than solid data. Officials failed to account for rising costs tied to the new public-sector wage agreement and increased employer contributions for long-term care reforms. These oversights led to a funding gap that threatened employee payments.
The city released a total of €32 million to address broader financial pressures, including higher childcare subsidies, rents, and utility bills. Despite the emergency measures, salaries and Christmas bonuses for municipal workers are now guaranteed until December.
Criticism followed the announcement. Christian Konarski, chair of Rostock’s CDU, called the situation an 'unusual administrative and budgetary disaster.' He argued that ensuring the city’s administration runs smoothly is the mayor’s core responsibility. The SPD also faulted the central administration for not spotting the shortfall sooner and demanded explanations from Kröger.
The additional €11 million will cover the wage shortfall, securing payments for Rostock’s employees through the end of 2024. With €32 million allocated for other rising costs, the city aims to stabilise its finances. However, questions remain over how the initial miscalculations occurred and whether further oversight will be introduced.
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