Suche
Mein Konto
Cologne's financial crisis: 294 million euros loss and urgent need for action!
The city of Cologne recorded a deficit of 294 million euros in 2024, despite increased tax revenue. Financial challenges require support from the federal and state governments.
Cologne's financial crisis: 294 million euros loss and urgent need for action!
A bitter blow for the city of Cologne: In 2024, the city administration had to accept a deficit of around 294 million euros. Loud ksta.de This deficit is slightly higher than the originally planned 286 million euros and represents an alarming trend. Despite additional income of 500 million euros compared to the previous year, the figures underline the municipality's financial problems.
Treasurer Dörte Diemert explained that the actual minus was 2.8 percent above planning and described this as a sign of solid economic activity. Nevertheless, reality requires a critical look at the financial situation in Cologne. Mayor Henriette Reker warned of the biggest financial crisis since the Second World War and appealed to the federal and state governments for more support.
Financial framework conditions
In 2024, Cologne was able to generate tax income of around 2.98 billion euros, which represents an increase of 137.6 million euros compared to expectations. But the expenditure amounted to 6.34 billion euros, which means a deficit of 518.3 million euros compared to the plan. A detailed analysis shows that the largest expenditure items are social transfer payments, personnel and supply expenses as well as loss-making clinics, which place a heavy burden on the budget ( stadt-koeln.de ).
The financial challenges are not new, as the Municipal Finance Report 2025 shows: The economy is stagnating, spending in important areas is constantly increasing, and the structural problems, especially in social spending, are unresolved ( bertelsmann-stiftung.de ). Inflation has caused a sustained increase in spending levels, which is becoming a significant burden for municipalities.
A look at the future
With a planned deficit of 399.4 million euros for 2025 and 443.8 million euros for 2026, the signs point to a storm for Cologne's budget policy. Reker and Diemert are committed to constructive dialogue with higher-level state authorities in order not only to find short-term solutions, but also to initiate a fundamental reform of municipal finances. Among other things, they demand freely usable grants from the federal government as well as measures to regulate old debts.
The situation will remain tense in the coming months. The forecasts for the municipal financial situation are predominantly negative, which affects not only the city of Cologne, but many municipalities in Germany. A rethink is necessary so that the city remains able to fulfill its tasks for the benefit of its citizens and at the same time ensure social stability.