How capable is the state of taking action? Only 18 percent of local government finance officials in North Rhine-Westphalia consider their municipality fully capable of acting. Inadequate funding and excessive regulation are seen as the main obstacles. Accordingly, there is a substantial need for reform at all levels of government, while the willingness to embrace change is perceived to be limited. In addition to the financial situation, investment and climate protection, the 2026 NRW.BANK.Fokus Kommunen survey focuses in particular on modernising the state.