Abstract
The successful regional transformation requires expertise, research, and innovation. The third annual regional policy conference took place in Chemnitz, the European Capital of Culture 2025 and former centre of metal industry. Among the key messages were that cities and municipalities are heavily indebted, with current debt amounting to 30 billion Euros at the municipal level. Without cities, no state would exist. Cities and municipalities carry out 25 percent of state tasks. There is a lot of duplication of responsibilities; a functioning state requires clarifying responsibilities and clearly assigning tasks. Social services should be brought closer to the citizens. It is necessary to continue reducing bureaucracy, to accelerate digitalization, and, in the meantime, to conduct a thorough clearance. The laws should be designed in such a way that they remain feasible. Tasks that need to be solved centrally should be made available online through a digital platform, and thus not burden the municipal administrations.