Circle of Vorpommern-Greifswald: turmoil for new circular levy!

Circle of Vorpommern-Greifswald: turmoil for new circular levy!

In the Vorpommern-Greifswald region, there is currently great excitement about the financial situation of the district. On July 7, 2025, the district council in Pasewalk will come together to discuss a supplementary budget that has become necessary due to the alarming financial situation. The expenditure of the district exceeds the income significantly, which leads to a financial gap of around 85 million euros for 2025, such as "https://www.nordkurier.de/regional/anklam/katastrophe-finanzlage-doch-doch--region-ge-einen-weg-3637240"> Nordkurier reported.

District Administrator Michael Sack (CDU) emphasized the urgency of this advice. The current minus in the district budget amounts to 85.4 million euros, whereby the increasing expenses in the youth and social field were identified as the main cause. While the income is relatively solid, the situation of the municipalities is still tense, since over 50% of the 140 municipalities in the circle suffer from restricted performance. Action is required here, and the administration suggests reducing the circular levy from 48.5% to 44%.

relief for the municipalities

The idea behind the reduction in the circular levy is to reduce the financial burdens of the municipalities. Such a step could bring a total of 14.4 million euros in relief for cities and municipalities. However, this measure is in direct connection with the need to achieve a balanced household in order to obtain additional funds from the country for the reduction in old debt. The CDU parliamentary group is even committed to a further reduction to 42%, while the good faction, consisting of the Green and Animal Welfare Party, calls for an even lower set of 40%, according to ndr .

The situation becomes more complicated because the growing debt of the circle, especially due to high social spending, endangers the balanced budget. An analysis has shown that many cities and municipalities are structurally underfunded. The federal and state governments need a clear need for action to improve the financial support of the municipalities.

A look at the total location of the counties

The current financial crisis in Vorpommern-Greifswald cannot be viewed in isolation. A report by the German District Council shows that in 2022 only 38.4% of the counties were able to achieve budget compensation. A deficit of 0.8 billion euros is even forecast for 2023, despite an expected increase in revenue of 7%. The social expenditure, which will continue to grow strongly after an increase of 6.5% in 2022, put a significant impact on the municipal households, as reported by Landkreisstag

If the framework for the financing of the municipalities and counties is not fundamentally improved, many regions of Germany, as in Vorpommern-Greifswald, could lead to a latent financial crisis. In this tense situation, the adaptation of the circular levy is only a small step on the long way to financial stability.