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German Cities Face Funding Shortfalls for Cultural Institutions

The financial situation for German cities and municipalities will not improve in the coming years, warns Burkhard Jung, President of the German Association of Cities. Cultural offerings may need to be reduced.

15 October 2026
German Cities Face Funding Shortfalls for Cultural Institutions

The financial situation for German cities and municipalities is unlikely to improve in the coming years, according to Burkhard Jung, President of the German Association of Cities (Deutscher Städtetag). Speaking about culture as a public task, Jung told MDR KULTUR that not all existing offerings can be sustained. "We will not be able to maintain everything we have in the long run," Jung stated, emphasizing that funding for new, vital initiatives will also become scarce.

Jung identified two primary reasons for the municipalities' financial distress: the current economic situation, which is reducing business tax revenues, and consistently rising social expenditures, increasing by an average of ten percent annually. He criticized the federal government for enacting laws without fully financing them. "We are responsible for about a quarter of the state's tasks at the municipal level, yet we receive only a seventh of the tax revenues," Jung noted.

Medium-sized cities, in particular, are facing significant challenges. The funding for theaters is precarious in cities like Zwickau and Plauen, as well as in western Germany. Jung indicated that discussions are underway regarding consolidating operations and whether these institutions can be preserved at all, noting they might represent the last cultural offerings in rural areas.

Jung cautioned that if the federal government does not initiate reforms this year, it could lead to a "development hostile to democracy." He called for solidarity with smaller theaters and cultural institutions in rural areas, contrasting them with larger metropolises that have more leeway due to their structures and significance.

Original source: mdr.de