Why was there a sharp decline in the number of municipalities in West Germany in the 1970s?

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The reduction was a deliberate policy. It is discussed at some length in section 2 of this paper by Hellmut Wollmann of Humboldt University.

Firstly, there had been huge changes in the settlement structure in post-war Germany, especially after the partition into East and West Germany. The old regional government model was becoming overwhelmed in many areas.

Secondly, regional planning policy was changing to the "Zentralörtliches System". The intent was to create a more efficient and cost-effective system, and this necessitated a smaller number of "central localities".

Finally (and perhaps the strongest driver for the changes) the introduction of the expansive welfare state by the Social Democrats would just have been too unwieldy without a huge reduction in the number of municipalities.

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Why was there a sharp decline in the number of municipalities in West Germany in the 1970s?

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