Capital City Financing Agreement: Subsidies for Berlin increased

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  The federal government has agreed to contribute up to 225 million euros towards the refurbishment of the Philharmonie. (File photo)

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  Checkpoint Charlie is to be further developed as a place of remembrance and education. (File photo)

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  Federal funding is available, amongst other things, to ensure the safety of demonstrations. (File photo)

In its capacity as the capital, Berlin receives more funding from the federal government for security and culture.

Representatives from both sides signed a new capital city financing agreement, which is set to run from 2028 to 2037. During this period, Berlin will have around five billion euros at its disposal for capital city-related expenditure. “Despite the tight budgetary situation, the federal government is fully meeting its responsibilities towards the capital,” said Federal Finance Minister Lars Klingbeil (SPD).

Funding for cultural organisations will be continued or increased

The agreement stipulates that the federal government will provide 2.9 billion euros to Berlin’s cultural institutions over ten years – an increase of around 350 million euros. “We are strengthening outstanding musical institutions, honouring the Bauhaus legacy, further developing Checkpoint Charlie as a place of remembrance and education, and safeguarding the diversity of Berlin’s cultural landscape through the Capital City Culture Fund,” said Wolfram Weimer, Minister of State for Culture. Existing funding is to be either continued or increased. According to the information provided, more money will be allocated to the Berlin Philharmonic and the Opera Foundation, which includes, amongst others, the Deutsche Oper, the Komische Oper, the Staatsoper Unter den Linden and the State Ballet. In addition, the federal government has pledged to contribute up to 225 million euros towards the refurbishment of the Philharmonie. The Bauhaus Archive will receive new funding.

Security grant to be increased by around 1 billion

The security grant will be increased from 1.1 to approximately 2.1 billion euros over the term of the agreement. This is intended to cover additional costs for police protection in the government district, outside ministries and embassies, for policing demonstrations, for state visits, and also higher staffing costs. The Federal Government recognises that the security situation has deteriorated significantly in recent years. Specifically, it will provide the State of Berlin with 200 million euros in security funding in both 2028 and 2029 – around 80 million more than previously. Thereafter, the grant is to increase by five million every two years, amounting to 205 million in both 2030 and 2031, and rising to 220 million euros by 2037.