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Thuringia’s Bold Plan: Cash Bonuses to Merge Shrinking Towns by 2045

A radical experiment in rural survival: Thuringia bets on cash rewards to reshape its fading towns. Can €2 million subsidies reverse decades of decline?

The image shows a drawing of a map on a piece of paper with text and numbers, which is a plan of...
The image shows a drawing of a map on a piece of paper with text and numbers, which is a plan of the city of Leipzig, Germany. The map is detailed and shows the various streets, buildings, and other landmarks of the area. The text on the paper provides further information about the city, such as its size, location, and features.

"Wedding bonus" for municipal mergers remains - Thuringia’s Bold Plan: Cash Bonuses to Merge Shrinking Towns by 2045

Thuringia is pushing ahead with plans to reorganise its municipalities as the region faces a shrinking population. The state government has introduced new financial incentives, including a one-off 'wedding bonus' of €200 per resident for mergers that create viable local structures. These changes aim to secure long-term financial stability by 2045 while addressing declining numbers across rural areas.

Over the past ten years, Thuringia has already seen around 300 municipalities merge or restructure, cutting the total from over 900 to roughly 600. The trend reflects an ongoing decline in population, with the state losing the equivalent of a small town’s worth of residents each year. To counter this, new guidelines will take effect in 2027, setting a minimum target of 6,000 residents per municipality by 2045—though sparsely populated regions will face a lower threshold of 5,000.

The state will offer additional support to ease the process. A €200-per-resident subsidy, capped at €2 million, will be available for mergers that meet the criteria. Municipalities with significant investment backlogs, particularly in areas like wastewater management, will also qualify for extra grants. For those struggling to find merger partners, debt relief measures are being introduced to ensure financial sustainability. Seven municipalities in Altenburger Land and Weimarer Land districts underwent reorganisation in 2021, though specific details about their new structures remain unclear. The broader strategy builds on earlier changes, such as the 2019 dissolution of the Verwaltungsgemeinschaft Altenburger Land and the planned 2026 incorporation of Dobitschen into Schmölln.

The reforms aim to create more resilient local governments in the face of demographic decline. With financial incentives and adjusted residency targets, Thuringia hopes to stabilise its municipal landscape by 2045. The measures will also address long-standing infrastructure gaps in struggling communities.

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