City of Jena in the financial crisis: 12.5 million euros in budget lock!

City of Jena in the financial crisis: 12.5 million euros in budget lock!

In the city of Jena, the municipal treasury faltered. Mayor Thomas Nitzsche (FDP) has prescribed a budget lock of 12.5 million euros in order to counteract the impending financial imbalance. The main cause of this drastic measure is the expected revenue from trade tax, which should remain behind expectations for around 2025 for 20 million euros, as [Rathaus.jena.de] (https://rathaus.jena.de/de/haushalt-stadt--jena-reactiglauftiglauft- trade income) reports.

If you look at the numbers, you can see the entire extent of the problem: originally a household hole of 23 million euros was planned, but this could increase to a proud 38 million euros. It is worrying that the city administration already indicates a deterioration in the household in the first tertial report for 2025. This pursues the goal of not endangering central projects and services for citizens, while savings in the administration must be made at the same time.

austerity measures and their effects

The new austerity measures will be noticeable. For example, the Jena and Jenaers have to expect to delete a free month for local public transport if a child is moved or born. The grants for various cultural projects are also shortened to bridge the financial bottlenecks. This is not uncommon: According to [diethueringer.de] (https://www.diethueringer.de/wirtschaft/spitzenverbaende-kommunen-droht-2025-ein-house-deficit-2979845), numerous municipalities in Thuringia are currently facing similar challenges to avert acute financial shortage.

The mayor plans to react flexibly to this loss of income by not setting all expenses. Rather, prioritization is made so that the provision of services and ongoing obligations remain ensured. Similar household barriers were introduced in 2019 and 2020 without excessively restricting the administration's ability to act.

A look into the future

The forecasts are dark: for the period from 2025 to 2029, a decline in trade tax revenue of a total of 60 million euros is predicted. In the worst case, this could lead to tightening the payment problems of many municipalities that have already reached the limits of their financial options. In the social area in particular, the counties and cities feel strong pressure due to increasing expenses that they cannot further reduce; According to the top associations, the investment backlog in the municipal infrastructure amounts to an incredible 1.6 billion euros.

With a view to the financial faults, it is crucial that the government and the municipal umbrella organizations take the situation seriously and are definitely looking for solutions to help the cities and municipalities in Thuringia. Whether in Jena, Nordhausen or elsewhere - a good hand is needed everywhere to restore the financial ability to act.