A fresh wave of criticism has hit Munich’s city administration after it approved the sale of two municipal buildings to the city’s own utility company, Stadtwerke München (SWM).
The controversial transaction, worth €173 million, is being denounced by opposition parties as a financial illusion designed to patch up the city’s strained budget ahead of the next local election.
Two buildings, one buyer – again
According to official documents, the properties in question are located at Blumenstraße 28 and Unterer Anger 2 in central Munich. Ironically, SWM once owned both buildings before selling them to the city in 2015 — at the time, the municipal energy provider needed liquidity to build reserves for the decommissioning of the Isar 2 nuclear power plant.
A decade later, the situation has reversed. SWM’s finances have stabilized, while the city itself is under growing fiscal pressure. “This is nothing but a magician’s trick by the finance director,” said ÖDP leader Tobias Ruff, accusing the administration of manipulating figures to avoid unpopular budget cuts before the upcoming elections.
“Munich is broke,” says opposition
Ruff didn’t mince words: “He’s pulling €173 million out of his hat to pretend that everything is fine. But that’s only a drop in the ocean. Munich is broke, and we fear a harsh austerity program after the election.”
His statement has since ignited a heated debate in local political circles about how the city manages its assets and the transparency of its financial decisions.
CSU raises alarm over long-term losses
The CSU faction in Munich’s city council has filed an official inquiry demanding clarity about the deal’s consequences. CSU councillor Andreas Babor warned that the city might be selling off its “family silver” merely to beautify its balance sheet.
“Just the transaction costs — notary fees and property transfer tax — will amount to several million euros,” Babor argued. “That money will no longer be available for urgently needed infrastructure projects. On top of that, Munich loses roughly five million euros in annual rental income.”
Double standards in the Bavaria?
Adding fuel to the controversy, observers noted that the CSU-led state government in Bavaria is currently pursuing a similar maneuver of its own. The Justice Center project in Munich, originally planned to include state-owned housing, is now reportedly being sold off due to what officials called a “changed budget situation.”
The parallel has not gone unnoticed in Munich, where critics say both city and state are using accounting tricks instead of tackling the real financial problems.
