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In a recent statement, Gert-Uwe Mende, President of the Hessian State Parliament, has expressed concern over the financial distress of Hessian municipalities and called for a paradigm shift to hold the federal government more accountable.
Mende, a member of the SPD party, warned of impending state discontent due to inadequate funding of municipalities. He cited the financial situation of Hessian municipalities as being in a catastrophic state, with the highest deficit in their history.
The Bertelsmann Foundation, in a previous report, detailed the financial distress of Hessian municipalities. The study served as a wake-up call, according to Mende, who found it politically neutral and analytical, with the greatest clarity in recent times.
Tax revenues are stagnating due to weak economic growth, and expenditure on personnel, material, and social services is growing unchecked. Personnel costs and inflation are other cost drivers for municipalities. According to the 2025 Communal Finance Report by the Bertelsmann Foundation, these trends are outlined in the report.
Mende suggests that the "catastrophic" financial situation should prompt a rethinking of state and structural reform. He believes that the investment booster only affects a part of the solution, implying that more comprehensive financial support is needed for municipalities.
One potential solution for the investment booster involves billions in tax relief for the economy, with the federal government fully compensating municipalities for tax losses until 2029. The state could potentially use additional debt allowance to benefit municipalities financially.
However, the specific proposals for addressing the financial distress of Hessian municipalities, as highlighted by Mende, have not been detailed in the available information.
It is common for German municipalities, including those in Hesse, to address financial distress through a combination of increased state-level financial transfers and support programs, encouraging more efficient municipal budgeting and administration, enhancing local revenue generation through property taxes and fees, and facilitating infrastructure investment programs to stimulate economic recovery.
Mende, as a representative and leader in Hessian politics, might advocate for these approaches, but without current specific citations, these can only be considered general contextual inferences.
For the exact proposals from Gert-Uwe Mende, it is recommended to check official Hessian State Parliament publications, press releases, or news sources directly covering his speeches or interviews.
The State Parliament is located in Wiesbaden. Municipalities, as the level closest to citizens, have high expectations for administration and services. If municipalities are not capable of acting, it leads to general state discontent, according to Mende.
- Mende, in response to the financial distress of Hessian municipalities, has advocated for a paradigm shift that involves a rethinking of state and structural reform, suggesting that more comprehensive financial support is needed for municipalities and potential solutions could include increased state-level financial transfers, more efficient municipal budgeting and administration, enhanced local revenue generation, and facilitated infrastructure investment programs.
- In his call for action, Mende has also highlighted the importance of vocational training within this context, as it could potentially contribute to the economic recovery and financial stability of Hessian municipalities, being a crucial factor in both business and general-news discussions, as well as politically and financially relevant in the broader scope of economics and community policy.
