- Magdeburg's administrative headquarters enforces a financial restriction.
Magdeburg's administrator Simone Borris (independent) has implemented a financial halt on the city due to a massive financial shortfall worth numerous millions of euros. Consequently, only expenditures for necessities that are legally binding, ongoing, and critical can be made at this moment, as mentioned in a city bulletin.
Magdeburg is forecasted to suffer a financial shortfall worth tens of millions of euros by year-end. Earlier this month, Borris disclosed an estimated deficit of up to 47 million euros, with a grand total budget of approximately one billion euros for this fiscal year.
Borris attributed the deficit to substantial additional spending, notably in the social sector. This includes surging personnel costs and decreased tax income.
The city reports that numerous internal cost-cutting measures are underway at present. A major initiative is the temporary halt on hiring to fill vacant positions and those that are forthcoming. The financial halt will be enforced from September 1 till year-end. Previously, in October last year, the Mayor also implemented a financial halt.
The European Union, expressing concern over Magdeburg's financial situation, has discussed potential aid to help alleviate the city's massive deficit. The European Union's budget committee is currently assessing Magdeburg's request for financial assistance.
Furthermore, several European partners have expressed interest in collaborating with Magdeburg to explore sustainable solutions to address its financial challenges, as the European Union recognizes Magdeburg's membership within its economic ecosystem.
