Suche
Mein Konto
Ingolstadt facing financial test: 80 million euros in savings needed!
Ingolstadt is facing a serious financial crisis: Mayor Scharpf provides information about savings and budgetary measures.
Ingolstadt facing financial test: 80 million euros in savings needed!
In Ingolstadt the signs are pointing to a storm, and it is not out of thin air. Today, Mayor Michael Kern and finance officer Franz Fleckinger called a press conference that described the city's financial situation as critical. The situation has become so dire that the city will have to target savings of 60 to 80 million euros for the coming year 2026 in order to make ends meet. As a result, Ingolstadt cannot draw up an approvable budget, which makes the city dependent on the government of Upper Bavaria - a situation that has never occurred in Ingolstadt's history. According to Donaukurier, this is an unprecedented step for the city.
The problem is not new, rather it is the result of a massive drop in revenue, especially in trade tax, which depends heavily on Audi. Despite the company's good economic situation, the city is faced with a decline in revenue - and this leads to immediate cost-cutting measures. Mayor Christian Scharpf (SPD) has already initiated a budget freeze and initiated a comprehensive package of measures worth over 100 million euros in order to realize the necessary savings. This will involve restrictions on city government services and possibly the introduction of new fees. [BR].
Mixed outlook
Despite the gloomy financial forecasts, Scharpf remains optimistic and is counting on a positive transformation of the automotive industry. “The discussions about the future of Audi and the challenges facing the industry are just the beginning,” he explains. Ingolstadt has reserves of over 190 million euros, but it is unclear how long these reserves can cover the necessary investments in schools and kindergartens while at the same time having to incur debts.
The situation not only poses challenges for the city administration, but also directly affects citizens. Tax relief for companies and private individuals is already having a negative impact on municipal budgets, and the deterioration of the financial situation of Bavarian municipalities is a serious threat. Scharpf is therefore calling for improved financing of municipalities by the federal and state governments, especially in order to secure educational resources.
Together into the future?
The developments in Ingolstadt are a worrying signal, not only for the city itself, but for the entire region. In view of this, the worst financial crisis in decades, it remains to be seen how the city's measures will work and whether its citizens will be able to bear the burdens in the coming years. The situation requires a good hand to get out of the crisis.