A new capital city financing agreement was signed on Tuesday. The agreement will allow for more federal funding for security and culture in Berlin. Berlin will have about five billion euros available for capital-related expenditures between 2028 and 2037.
The federal government said in a press release that this will significantly support Berlin’s development as a safe and attractive capital city. The agreement stipulates that the federal government will provide €2.9 billion to Berlin’s cultural institutions over ten years, an increase of approximately €350 million. Existing funding will either be continued or increased.
According to reports, more money will be provided for the Berlin Philharmonic and the Opera Foundation, which includes the Deutsche Oper, the Komische Oper, the Staatsoper Unter den Linden, and the Staatsballett. The federal government has also pledged up to €225 million for the renovation of the Philharmonie. The Bauhaus Archive will receive new funding.
The security subsidy will be increased from €1.1 billion to approximately €2.1 billion over the contract period. This is intended to cover additional costs for police protection in the government district, in front of ministries and embassies, for monitoring demonstrations, for state visits, and also for higher personnel costs.
Specifically, it will support the state of Berlin with €200 million each in 2028 and 2029 for security purposes – around €80 million more than before. After that, the subsidy is to increase by €5 million every two years, reaching €205 million in both 2030 and 2031, and growing to €220 million by 2037.
The opposition in the Berlin House of Representatives criticised the new capital city financing agreement. While the Left Party generally welcomed the additional funds, they believe the agreement falls significantly short of the state’s demands. Interior Senator Iris Spranger had, among other things, called for at least 350 million euros for Berlin’s security responsibilities.
Die Grünen criticised the timing of the contract signing. In their view, it would have been appropriate to leave the decision on the future financing of the capital city to the newly elected Senate.
