[corty]

Berlin doesn't care about money. Back when separated by the iron curtain, Berlin always got a special deal in federal/state finances because of its situation. After reunification, Berlin was pumped full of money because it was the new designated capital city and showpiece for unification. Nowadays, some of the special deals still remain, plus Berlin is awarded absurd amounts of money from the "Länderfinanzausgleich" (state finance balancing mechanism), meaning that the richer German states pay for Berlin's deficit.

So Berlin is in the comfortable situation of that one no-good family member on social security who will always find someone to pay their bills. Why change anything, why stop spending all that money, if more keeps coming without any effort in any case?

[MichaelZuo]

It’s always easier to spend other people’s money. Is there a competent central auditing department that watches out for this?

[corty]

There are, but they can only audit and report. Change and punishment would need to happen politically, but that would need a majority of states. Two thirds of the states profit from Laenderfinanzausgleich (to various degrees) and will not change anything.