Stuttgart breaks free from budget red tape under new deregulation law
Stuttgart has become the first city in Germany to receive a special exemption under the new Local Deregulation Act. The rule change means the city no longer has to list total and filled positions in its annual budget plan. Officials see this as a chance to cut red tape and streamline local administration. The Local Deregulation Act took effect on October 21, 2025, allowing municipalities to test new approaches by temporarily bypassing certain regulations. Stuttgart’s exemption marks the first use of this flexibility in the news. The decision gives Stuttgart more freedom in budget planning for the next four years and sets a precedent for other cities looking to simplify their administrative processes. The outcome will depend on how effectively the city uses this new flexibility.
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