Church Under Pressure - Diocese Cuts Funds Again - German diocese faces financial crisis as church tax revenues plummet
The Diocese of Rottenburg-Stuttgart is under growing financial pressure as church tax revenues continue to fall. To cover shortfalls, officials have withdrawn around €40 million from reserves. Without action, the diocese warns of severe cuts starting in 2027.
Church tax income has dropped faster than expected, forcing the diocese to revise its long-term plans. Parishes will now receive €167 million in 2026, down from €183 million. Earlier projections had assumed allocations would stabilise at €280–290 million, but revenues are still declining.
In response, the diocese has launched the Church of the Future project. The plan includes reducing the building portfolio by 30%, expanding digital services, and merging over 1,000 parishes into just 50–80 larger units. The curia itself is also cutting costs, aiming for a 10% reduction in material and personnel expenses by 2030.
No layoffs are planned due to an ageing workforce, so restructuring will happen gradually. However, projections show church tax revenues could fall to €246 million by 2027. Without the new measures, the diocese would face even deeper financial trouble in the coming years.
Other German dioceses, such as Trier and Essen, are facing similar pressures. Trier expects a €5.7 million deficit in 2026, while Essen is accelerating cost cuts due to falling membership. Many are adopting long-term reforms, like Cologne's Rahmenplan 2030, to address stagnation.
The diocese's austerity measures aim to stabilise finances before 2027. Parishes will operate with less funding, and structural changes will reshape local church administration. Officials stress that gradual adjustments are necessary to avoid more drastic cuts later.
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