German cities buckle under record debt as national deficit surges despite rising tax revenues (opens in new tab)

Germany’s fiscal problems are no longer confined to Berlin — they are now most visible in the country’s towns and cities, where local governments have recorded their worst deficit since reunification. According to a DeStatis press release on Tuesday, municipal finances deteriorated sharply in 2025, with the deficit climbing to €31.9 billion, up from €24.8 […]