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Jena introduces budget freeze: trade taxes fall drastically!
The city of Jena is reacting to falling trade tax revenues by blocking its budget and postponing expenses.
Jena introduces budget freeze: trade taxes fall drastically!
The city of Jena is facing a financial challenge: the persistently falling income from trade tax is forcing the administration to take urgent measures. How jenatv reports, the city has decided to introduce a budget freeze to respond to the looming deficits. Proposed spending will be reviewed and many will be put on hold to ensure financial stability.
A look at the numbers shows that trade tax revenue in Jena for 2025 is around 20 million euros below expectations, which is putting a heavy burden on the municipality. According to a publication by the Federal Ministry of Finance on May 15, 2025, a decline in trade tax revenue totaling 60 million euros is expected for the period from 2025 to 2029. Jena town hall highlights that the last comparable decline in revenue was recorded in 2019. Income tax will also fall significantly in the coming years.
Financial measures and their effects
In view of these figures, the mayor has announced a budget freeze in accordance with Section 22 ThürGemHV-Doppik for June. The city wants to respond flexibly to unforeseen revenue losses while ensuring that essential public services are maintained. However, prioritization of spending will be necessary, meaning not all projects can continue.
The city administration has already taken an initial assessment of the budget result. This indicates a deterioration that requires urgent action due to a deviation of more than two million euros. The measures now being taken to get finances under control are not new; Similar steps were taken in 2019 and 2020 without unduly restricting the administration's ability to act.
Structural challenges of municipal finances
However, the problems that Jena is currently experiencing are part of a much bigger picture. The German Association of Cities and Municipalities warns that the entire municipal financial system is under pressure. Presidents of the municipal associations have specifically commented on the forecasts and emphasize a permanent imbalance. The municipalities' share of community taxes must be increased; Otherwise, the city councils will only be able to deal with a shortage economy.
Last year, municipal budgets already experienced a slump of more than 8 billion euros, and forecasts for the current year indicate a further decline of more than 7 billion euros. The most urgent investments in important areas such as climate protection, transport and social infrastructure are hardly possible under these conditions. Concerns about future financial challenges are great and cast a shadow over the development of cities and communities in Germany.
Jena faces difficult decisions. The current measures are therefore not only a short-term response plan, but also a step towards a long-term, stable financial policy that meets the needs of the city and its citizens.