Berlin districts in danger: financial crisis threatens the ability to act!
Tempelhof-Schöneberg's mayor warns of financial bottlenecks and districts unable to act due to the budget deficit.

Berlin districts in danger: financial crisis threatens the ability to act!
The financial problems of Berlin's districts are reaching alarming proportions. According to a report by the Daily Mirror The districts are warning of a massive loss of their ability to act, which affects not only administration but also the security of citizens. The mayors of districts governed by the Greens in particular criticize the black-red Senate for depriving them of necessary financial leeway.
Jörn Oltmann, mayor of Tempelhof-Schöneberg, points to structural underfunding and fails to take rising costs into account in the current budget draft. He emphasizes that only functioning districts can contribute to Berlin's security. Stefanie Remlinger, Mayor of Mitte, urges that the districts are not able to create policies that meet the needs of citizens under the current financial conditions.
Budget deficit and financial uncertainties
The situation is further exacerbated by the expected financing deficit of almost 4.9 billion euros, which Berlin will close in the 2025 financial year. These figures, published by the Berlin Senate Administration, show that adjusted revenues are around 37.5 billion euros, while expenses rise to around 42.4 billion euros. The preliminary deficit could be 1.5 billion euros higher than originally assumed.
Despite an increase in additional revenue totaling 664 million euros, primarily through additional tax revenue and additional federal contributions, the main cause of the deficit remains the exorbitant increase in transfer expenditure. These include, among other things, support for housing benefit, basic security and the costs of accommodation, which further increases the financial challenges.
Harbingers of a massive deficit
The financial difficulties are not just limited to Berlin. The Municipal financial report 2025 notes that the overall financial situation of municipalities in Germany has collapsed dramatically. Weak economic activity and stagnating tax revenues mean that important expenditure items such as personnel and social services are growing unchecked. The optimistic outlook for the coming years is missing, while the structural problems, especially with social spending, remain unresolved.
Board member Brigitte Mohn makes it clear that the deficit calls into question the municipalities' financial ability to act. Municipalities support over 50 percent of public investments and are crucial for social cohesion. Comprehensive reforms and clear financial responsibility on the part of the federal government are necessary to secure the tasks of the municipalities and ensure their future stability.
In Berlin, not only are shorter deadlines for necessary projects at stake, it has also become clear that funds for security-relevant projects, which were promised by Governing Mayor Kai Wegner (CDU), have not yet been anchored in the budget. After an inconclusive meeting between Wegner, Finance Senator Stefan Evers (CDU) and the district mayors, many questions remain unanswered, while concerns about painful cuts, such as in school cleaning and the maintenance of green spaces, are becoming ever louder.