The KfW Municipal Panel is based on an annual survey of treasuries of cities and municipalities with more than 2,000 inhabitants and of all rural districts. The survey is conducted by the German Institute for Urban Affairs (Difu) and supported by the leading municipal associations. The panel advisory board includes municipal representatives and researchers.
The KfW Municipal Panel 2024 shows a clear clouding of sentiment in the municipal treasuries. The assessments of the current and future financial situation are increasingly pessimistic. Increasing expenditure on social, personnel and material costs in particular is a long-term challenge for municipal budgets and reduces the scope for municipal investment. The growth in investments cannot compensate for increased prices and investment needs. As a consequence, the municipalities' perceived investment backlog continues to rise. The planning, implementation and financing of municipal investments is hampered by various monetary and non-monetary investment obstacles. Higher investments require these obstacles to be reduced, e.g. through leaner procurement processes, more flexible building regulations and a broader funding basis for municipal investments.
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