Hesse’s towns struggle as debt soars to €60.2 billion in 2024

A financial storm engulfs Hesse as towns slash essential services. Can emergency aid—or mergers—save them from collapse?

, and Administrator

2025 November 21 . 3:08 PM

1 min read

This image is clicked in the city. At the bottom, there is a road, on which there are cars. To the... — This image is clicked in the city. At the bottom, there is a road, on which there are cars. To the left and right, there are buildings and skyscrapers. At the top, there is a sky.

Rechnungshof: Kommunen must save - Mergers as a solution? - Hesse’s towns struggle as debt soars to €60.2 billion in 2024

Hesse’s local authorities are grappling with severe financial issues in 2024. Four out of five face funding shortfalls, while total municipal debt has climbed to nearly €60.2 billion. The crisis has forced towns and cities to rethink essential services, including childcare and school safety.

The financial situation in Hesse deteriorated sharply between 2023 and 2024. The funding gap in core municipal budgets jumped from €597 million to €2.6 billion in just one year. Total debt in 2023 stood at €16.7 billion, with an additional €43.5 billion hidden in off-balance-sheet liabilities.

Hesse’s municipalities are under growing financial strain, with debt rising and emergency aid offering only temporary relief. Without structural changes, the state’s 421 local authorities may face forced mergers or further cuts to basic services. The crisis underscores the need for clearer priorities and long-term solutions.