“The Corona pandemic leads in all the towns and cities to major financial burdens: the revenue collapsing, expenditure is set to rise,” said the President of the German Association of cities, Burkhard Jung, the German press Agency. “Already significant intrusions from the business tax. According to the important helps of economy, trade and self-employed persons the local authorities also need financial support.“ The mayor of Leipzig, said the Association of cities and towns fear for the year 2020, a deficit of German municipalities in the tens of billions. “We ask the Federal government and the countries are in urgent need of a common effort, so the ability to act is ensured by the cities and the liquidity in the municipal coffers.”
The Federal government had decided to comprehensive support for the economy, in order to protect companies and Jobs. Jung said that it must be a bail-out for the municipalities clamped. “Because even after the crisis, people in cities and communities that can provide their citizens with good public services available to want to.”
Young said the municipal revenue for a broke heavily: at present, the trade tax, soon also in the case of the income tax. “Add to that declines approximately at the kita contributions, revenue losses in the case of libraries, swimming pools and theatres.” During the crisis, many events have been canceled, the Theater shut down.
in addition to the municipalities, local businesses came through the Corona pandemic in financial difficulties, said Young: “As transport companies, trade fairs, airports, event centers, ports, baths, Zoological gardens, and cultural institutions are, for example, by the loss of revenue to the part that threatened its very existence.”