The content reflects the results of Perplexity's research and analysis and does not represent an expression of opinion by Gradido. They are intended to provide information and stimulate further discussion.

Gradido pilot projects in German cities: Scientific evaluation and recommendations for action

Meaningfulness of the direct city approach

Favorable framework conditions

The current situation of German municipalities creates exceptionally favorable conditions for innovative approaches such as Gradido. Municipal finances are in the worst crisis in post-war history: In 2024, cities and municipalities recorded a record deficit of 24.8 billion euros, and this is expected to rise to over 30 billion euros in 2025. 85% of the German municipalities cannot present a balanced budget.^1^3

This financial shortage creates a enormous pressure to innovate. Municipalities are forced to look for new ways because traditional solutions are failing. The scenarios described in the Lieblingsstadt document - rescuing companies, improving municipal finances, strengthening volunteer work - address concrete pain points German municipalities.

Existing openness to alternative approaches

Germany already has 46 active regional currenciesfrom the successful Chiemgauer (700,000 bills in circulation, 600 acceptance points) to smaller local projects. The municipality of Langenegg in Vorarlberg is an example of how Regionalweld ties up 680,000 euros a year in a 450-household community and creates 150 jobs.^4^6

Smart City initiatives The federal government is currently funding 73 pilot projects with 820 million euros. These programs show the Basic readiness of politics and administration for systemic innovations, especially if they combine citizen participation and sustainability.^7

Target groups: Optimal city types for Gradido pilot projects

Small towns (5,000-20,000 inhabitants): Highest chances of success

Small towns offer the most ideal conditions for Gradido pilot projects:

• Manageable structures: Short communication channels between citizens, administration and local businesses

• High financial pressure: Small towns are particularly affected by the municipal finance crisis

• Strong culture of volunteering: 40% of Germans are involved in voluntary work, especially in smaller communities^8

• Pragmatic decision-makingLess bureaucratic hurdles than in large cities

Concrete starting points from the favorite city document:

• Local pizzeria as multiplier (low-threshold entry)

• Volunteer fire department as an established volunteer structure

• Saving local businesses (shoe manufacturing example)

Structurally weak regions: Highest willingness to innovate

Particularly suitable are municipalities in structurally weak areas:

• East German municipalities with 43% lower asset level^9

• Regions with Population decline and business deaths

• Municipalities with Budget emergency or under municipal supervision

These municipalities have "nothing to lose" and are more open to radical alternatives. The Langenegg example shows that regional currencies can Dying village successfully.^4

Rural communities with a strong identity

Rural communities with a strong local identity offer ideal conditions:

• High density of clubs and traditional neighborhood help

• Short social networks ("everyone knows everyone")

• Strong local cohesion as a basis for cooperation projects

• Solidarity agriculture already available as a starting point

The Permaculture and solidarity agriculture already exists in rural communities.

Success factors for Gradido implementation

Critical success factors (in order of importance)

1st mayor as supporter (Importance: 9/10)

• Availability: Rare - This is the most important but most difficult factor

• Mayors must act as "Carer" and visionaries (such as "Mayor Miteinand" in the document)

• Required political courage for innovative experiments

2. manageable community size (Importance: 9/10)

• Availability: High - Many small municipalities in Germany

• Enables personal relationships and Direct communication

3. existing volunteer structures (Importance: 8/10)

• Availability: High - Germany has a strong club culture

• 28.8 million people actively volunteer^8

• Fire department, sports clubs, neighborhood help as Anchor points

4. financial distress of the municipality (Importance: 8/10)

• Availability: Very high - 85% of the municipalities affected^1

• Creates Pressure to innovate and Willingness to experiment

Obstacles and risks

Main obstacles:

1. Legal uncertaintyMunicipal law, budget law, tax law

2. Bureaucratic inertia"We've always done it this way"

3. Political risk aversion: Fear of failure and electoral defeat

4. Complexity of the federal system: Different municipal codes of the federal states

5. Lobby resistanceEstablished interest groups (banks, large trading companies)

Risks:

• Failure of the pilot project discredits the entire concept

• Media attention can lead to political pressure

• Legal challenges by competitors or supervisory authorities

Concrete recommendations for action

Phase 1: Strategic preparation (6-12 months)

1. legal protection

• Legal opinion on Gradido in German municipal law

• Cooperation models develop with established structures (cooperatives, associations)

• Pilot legal framework negotiate with ministries at state level

2. scientific legitimacy

• University cooperation for accompanying evaluation

• Feasibility study by renowned institutes (Bertelsmann Foundation, etc.)

• Reference projects document from other countries

3. stakeholder mapping

• Progressive mayors Identify in structurally weak regions

• Municipal associations gain as multipliers

• Voluntary organizations Build up as a partner

Phase 2: Pilot partner acquisition (3-6 months)

Targeted approach according to priorities:

1st priority A: municipalities in need

• Budgetary emergencies - municipalities Address directly

• Line of argument"Gradido as a supplement to renovation"

• Cooperation offerComplete scientific monitoring and legal protection

2nd priority B: Innovative small towns

• Smart City participants address the federal funding

• Sustainability award winners contact (e.g. German Sustainability Award winners)

• ReasoningGradido as the "next evolutionary step" of the smart city

3rd priority C: Committed rural communities

• Village renewal award winners and Our Village national competition Participants

• Solidarity agriculture sites as starting points

Phase 3: Pilot project design (2-4 months)

Gradual introduction strategy:

Level 1: Honorary Gradido (3 months)

• Start with Honorary remuneration (20 Gradido/hour as in the document)

• Fire department, THW, sports clubs as the first participants

• Gradido cafés for low-threshold acceptance points

Level 2: Local economy (6 months)

• Voluntary participation local stores

• 3% Discount when exchanging Euro→Gradido (proven model)

• Gradido Days as in the pizzeria example

Stage 3: Municipal integration (12 months)

• Municipal subsidies output in Gradido

• Community projects how to realize shoe manufacturing

• Complete circuit closure

Phase 4: Professional communication

Internal communication:

• Administrative training for all employees involved

• Citizens' meetings with transparent information

• Continuous dialog with skeptics

External communication:

• Media cooperations with local newspapers/radio

• Scientific publications for legitimization

• Best practice exchange between pilot municipalities

Crisis prevention:

• Emergency plans for legal or media problems

• Exit scenarios if pilot project fails

• Regular communication of success to all stakeholders

Conclusion and priority for action

The direct approach of German cities for Gradido pilot projects is not only sensible, but strategically optimal timing. The historically unprecedented municipal financial crisis creates Unique opening window for systemic innovations.

Highest chances of success have:

1. Small structurally weak municipalities (500-5,000 p.e.) in eastern Germany

2. Innovative small towns (5,000-15,000 p.e.) with open-minded mayors

3. Rural communities with a strong tradition of volunteering and local identity

Critical success factor is the Quality of preparationLegal certainty, scientific support and political backing are essential. A Failed pilot project would discredit the entire Gradido concept for years to come.

Recommendation: Start with 2-3 carefully selected pilot municipalitiesthat fulfill all critical success factors. The favorite city scenario is Realistically realizableif the framework conditions are right. The time for transformative municipal experiments is now.