Ulm is faced with financial crisis: construction measures in danger!

Ulm is faced with financial crisis: construction measures in danger!

Ulm, Deutschland - The financial situation of the city of Ulm is currently very tense and there are dark clouds for numerous construction projects. Martin Bendel, the fifth mayor of Ulm, outlined the worrying situation in a current report. The main causes of the difficulties are increasing costs due to inflation and higher energy prices, while the yields stagnate. Despite these challenges, Ulm is considered a financial sample student by many, but the situation is anything but rosy. So the Schwäbische Zeitung Conditions.

Ulm plans to invest astonishing 726 million euros by 2029, which is almost twice as high as the average of German cities with more than 50,000 inhabitants. An important decision was the increase in the debt -upper limit from 200 to 250 million euros. However, it remains exciting that there are forecasts in the room that said that Ulm could exceed this new border from 2027. Next year, a record new debt of 120 million euros will be expected, which increases uncertainty.

savings and construction work affected

Bendel warns that the city may have taken over, especially in view of the planned State Garden Show 2030, which should cost an impressive 87 million euros. At the same time, around 180 million euros are missing to realize all planned investments between 2026 and 2029. In order to counteract this, a "sliding list" is to be created in order to move projects and thus save around 100 million euros in investments. This could have a negative impact on the planned expansion of the pedestrian zone and the construction of daycare centers. The German Cities Day emphasizes that over 50% of the investment deficiency in Germany is no longer necessary, a fact that should not be different in Ulm.

Even within the administration, the voices are mixed. Bendel expects heated political discussions in the local council to save the necessary savings. The budget for 2026 could not be adopted as usual in December. This once again illustrates the precarious situation in which the municipalities are currently. According to the results of the KfW municipal Panel 2024, most municipalities show serious tightening in their budget situations, and almost 90% of them expect further deterioration.

ULM therefore faces the challenge of cope with the investment backlog, which endangers the future viability in Germany. If you want to promote good infrastructural conditions, you also have to invest in education, transport and digitization. In view of the current figures, it can be hoped that Ulm can tear the financial rudder around in time before the "black clouds" continue to condense.