Surprisingly, the financial support provided by the federal and state governments enabled municipalities to close the survey year 2020 with a small surplus. The great uncertainty about further financial developments, however, has the potential to adversely affect public investment as well as non-mandatory public services, such as sport and culture. The current KfW Municipal Panel 2021 therefore illustrates the need to take short- and medium-term measures that stabilise municipalities’ capacity to act so that they can sustainably address the major societal challenges and tackle the perceived investment backlog, which has now reached EUR 149 billion.

KfW Municipal Panel 2021 – Summary(PDF, 103 KB, non-accessible)

Press release