Auswirkungen von Covid-Pandemie und Ukraine-Krieg auf die kommunale Investitionstätigkeit

The present article draws upon official financial data and subjective assessments of municipal finance managers in order to examine whether and how municipalities in North Rhine-Westphalia adapted their investment behavior to the Covid-19 pandemic and the war in Ukraine. Despite worsening investment conditions, particularly small and medium-sized municipalities managed to increase investment spending “post Covid” even after accounting for inflation effects. However, overall municipal investment activity would have been considerably higher without the influence of both crises. Against the backdrop of a heterogeneous picture, financial factors and mandatory tasks most strongly influence how much individual investment spending changed. The article finally outlines implications of municipal investment behavior “post Covid” for economic policy and the overall economy in NRW.