Coronavirus update on municipal finance: 2021 will be another nail biter

Although the German federal and state governments introduced a range of measures in 2020 to ease the strain on municipal budgets, considerable uncertainty remains, especially beyond 2021. This is also reflected in the responses returned by the municipalities surveyed for the KfW Municipal Panel 2021. The findings of a preliminary analysis highlight the risk of considerable cuts in municipal investment expenditure and discretionary activities. The uncertainty for public finances thus threatens to unleash long-term negative consequences beyond the crisis period unless financial planning certainty can be created for municipalities.

Coronavirus update on municipal finance: 2021 will be another nail biter(PDF, 195 KB, non-accessible)