German municipalities eye drastic cost-cutting measures due to energy crisis: Survey

BERLIN

With inflation and the energy crisis dealing major blows to German cities' finances, a survey of over 300 large municipalities revealed how to save to most resources.

Residents must prepare for dark streets, cold swimming pools, and cutbacks in care for young people and seniors, suggested the results of the annual study by consulting firm Ernst & Young.

More than half, 54%, of the cities and municipalities surveyed want to cut services, more than double the previous year's 26%.

Of the respondents, 42% reported planning to reduce street lighting, an even more substantial rise from just 13% in 2021.

The complete or partial closure of swimming pools was on the agenda of 31% of the municipalities, compared to the previous 16%.

Against 11% last year, the cost-cutting efforts of 17% are targeting offers for young people and seniors.

For the survey, 301 municipalities with at least 20,000 inhabitants were questioned in October and November.

Accordingly, around half of the financial administrations surveyed expect energy spending to increase by 20% or more in the coming year.