Eleven Million Euros Approved - City Employees' Salaries and Christmas Bonus Secured - Rostock’s Budget Crisis Exposed by Flawed Financial Planning and Costly Oversights
Rostock’s city administration is facing sharp criticism after a budget shortfall came to light. The financial gap emerged during the 2025 budget execution, exposing errors in earlier projections. Officials now admit that overly optimistic staffing cost estimates led to the crisis.
The problems began with the 2024/2025 financial plan, approved in 2023. At the time, projections lacked concrete data on funding needs. Unexpected expenses arose from the new public-sector wage agreement and higher employer contributions for long-term care insurance reforms.
The shortfall became clear only during budget execution, prompting outrage. Julian Barlen, SPD parliamentary group leader, called it a 'major organizational failure' and questioned why the issue was not spotted earlier. Christian Konarski, chair of Rostock’s CDU, went further, labelling the situation an 'unprecedented administrative and budgetary disaster'.
Mayor Eva-Maria Kröger admitted the mistake, acknowledging that staffing cost calculations had been too optimistic. Despite the crisis, municipal employees’ salaries and Christmas bonuses remain secure for the year.
To address the gaps, the city council approved €11 million in emergency funding for wage payments. An additional €32 million was released to cover rising costs in childcare subsidies, rents, and utilities.
The city has now allocated extra funds to stabilize finances, but questions remain about oversight. The mayor’s admission of miscalculations highlights flaws in the budgeting process. With emergency measures in place, attention turns to preventing future shortfalls.
