Rastatt's budget crisis deepens as trade tax revenue collapses by 70%
The Karlsruhe Regional Council, acting as the responsible supervisory authority, has approved Rastatt's 2026 budget—unanimously adopted in late January—but with numerous conditions attached.
Like many other municipalities, the city of Rastatt is currently facing severe financial pressure. As already became clear during the budget proposal, the baroque city is also grappling with a dramatic collapse in trade tax revenue for 2026, forcing significant cuts. Mayor Monika Müller informed the city council on March 23, 2026, that the financial situation had deteriorated even further.
Under the agenda item "2026 Budget Implementation; March 2026 Status Report—Trade Tax Revenue Development," it was revealed that Rastatt now expects only around €300,000 in remaining trade tax income for the current year—far below the originally projected €1 million. The shortfall stems from high refunds of advance payments received from local businesses last year, with a corresponding notice from the tax office now in hand. Additional adjustment notices for earlier periods have also arrived, leading to further refunds. In short, Rastatt is navigating a severe financial dry spell.
The Regional Council has emphasized that the city must continue its budget consolidation plan and critically review its investment program for the current year and beyond to identify potential savings. While the authority confirmed the legality of the 2026 budget resolution, it has explicitly demanded further cuts.
Additionally, by September 1, 2026, Rastatt must report to the Karlsruhe Regional Council on the latest developments in its budgetary situation, the status of its consolidation efforts, updates to its investment program, and progress on ongoing projects.
"Further savings and increased revenue remain urgently necessary," Mayor Monika Müller explained. Achieving this will require more than the measures already proposed by the administration. She called on city council members to continue submitting their own proposals and stressed the importance of involving the public. A public event is planned for June to outline next steps for 2027. "Our goal remains clear," the mayor stated: "to keep Rastatt financially viable and improve its economic situation."
For more information and the current budget plan, visit https://www.ourwebsite/budget-2026.
