News of the Congress of Local and Regional Authorities

Назад Germany: More financial autonomy for local authorities needed, despite high standards of local democracy observed, says Council of Europe’s Congress new report

Germany: More financial autonomy for local authorities needed, despite high standards of local democracy observed, says Council of Europe’s Congress new report

A report adopted on 22 March 2022 by the Council of Europe’s Congress of Local and Regional Authorities welcomes "high standards" of local democracy and a "sophisticated legal framework" covering all aspects of local self-government in Germany. The report highlights, in particular, the strong level of judicial protection and the wide range of responsibilities and organisational autonomy enjoyed by German local authorities.

However, rapporteurs Konstantinos Koukas (Greece, EPP/CCE) and Jani Kokko (Finland, SOC/G/PD) draw attention to the reduced financial autonomy of local authorities due to the increasing needs in the social sector, the need to strengthen counties’ (Kreise) taxation powers and the lack of diversification and flexibility of their revenue system.

The Congress calls on the German authorities to provide local authorities with adequate financial means that give them the freedom to spend these resources and to revise the financial status of counties. It also calls to extend their taxation powers and for the corresponding taxes not to be levied at the expense of municipalities which are part of the counties. The adoption of concrete standards and criteria for the implementation of the commensurability principle would ensure transparency in the whole financial calculation and planning process.

The Congress also calls for the strengthening of the participation and consultation rights of local government associations at federal level and invites the German authorities to sign and ratify the Additional Protocol to the European Charter of Local Self-Government on the right to participate in the affairs of local authorities.

This is the second monitoring report on Germany since the country ratified the European Charter of Local Self-Government in 1988. Countries which have ratified the Charter are bound by its provisions. The Charter requires compliance with a minimum number of rights, which form the European bedrock of local self-government. The Congress of Local and Regional Authorities ensures that these principles are observed through its monitoring activities.

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