Monday, 18 November
Coalition Committee wants to approve Berlin Senate’s budget squeeze
Berlin is tightening its belt. Budget cuts will leave a mark on everything from opera houses to bus routes. Faced with a 3 billion euro budget gap, the city’s coalition is making cuts that are causing concerns across the board.
The culture sector, for instance, will have 11.6% shaved off its already meagre budget. The Opera Foundation alone is losing 15 million euros, while the long-planned renovation of the Komische Oper is beginning to look unlikely, with 10 million euros in funding pulled from the project. Small theaters, museums and independent projects won’t be spared either, leading to fears that it could leave a scar on the city’s creative scene.
The news isn’t much better for transport, and if you were hoping for faster and better bike lanes, think again. The BVG’s plans of an all-electric bus system by 2030 has been parked indefinitely, and the popular 29 euro public transport ticket could soon cost 39 euros, or disappear altogether. Even the Sozialticket, a lifeline for many, is likely jumping from 9 euros to 19 euros.
Housing subsidies will be taking a hit, with 150 million euros in funding being swapped out for loans and guarantees, creating concern that this could slow down much-needed developments and derail efforts to tackle the city’s housing crisis.
And while cuts seem to be dominating the headlines, Berlin is also looking to make some extra euros. Proposed revenue boosters include a hike in the entertainment tax (from 20% to 25%), higher second-home taxes, pricier parking permits for residents, and a potential bump in the tourist tax.
The coalition committee is expected to make the final decision on both tax increases and cuts on Monday evening.
