Neckenmarkt on the edge of insolvency: municipal finances in danger

Neckenmarkt on the edge of insolvency: municipal finances in danger

The current economic developments throw long shadows on the financial situation of many communities in Austria. The city of Neckenmarkt in the Oberpullendorf district, which is expected to expect an average of around 300,000 euros in the coming year. The reason for this drastic situation is increased costs that enable the country to keep a higher proportion of the income shares from the federal government. This means that urgently needed projects, such as the planned renewal of the debt, have to be pushed into the background.

"In order to implement these new framework conditions, it will be extremely difficult for us to compensate for our budget next year. We have to drive on the back flame and still count on a negative financial result," explains the mayor of Neckenmarkt, Johannes Igler, who belongs to the ÖVP. One of the biggest loads in Neckenmarkt is kindergarten, the visit of which has been free for years. Igler has made the suggestion to demand at least a small contribution from the parents to cover the expenses.

request for support from the BUND

The challenges that many communities are facing should not be underestimated. Astrid Eisenkopf, the governor's deputy and one of the main actors in relation to the municipal finances, has clearly spoken out for a relief package from the federal government. "The income of the municipalities has broken dramatically, while at the same time the costs have increased significantly through inflation. This affects not only the municipalities, but also the countries," said Eisenkopf. It calls for an early intervention to support the communities.

Although the mayor of Steinbrunn, Isabella Radatz-Grauszer, remains optimistic and notes that her community can generate a balanced budget even in difficult times, she also sees the need for a relief package. In the current coalition negotiations, she hopes for positive results for the municipalities. At the same time, however, it is also aware that the nationwide financial situation is tense, especially since the EU Commission has already threatened a procedure against the Republic of Austria because the new debt is classified as too high.

The Maustädter are by no means alone with their financial policy situation. Many other municipalities in Burgenland and beyond struggle with similar financial problems that question sustainable development and the fulfillment of local tasks. Of course, it remains to be hoped that the upcoming political discussions will lead to solutions that enable the communities to stabilize their financial situations and continue their projects.

Further information on these developments can be found in a recent report by burgenland.orf .