Every second community threatens financial collapse - act now!

Every second community threatens financial collapse - act now!

St. Pölten, Österreich - The financial situation of the municipalities in Austria is dramatic. According to a current report by Oe24 Warn the civil service and warn The KDZ in front of serious financial passports. Last year, the public deficit of the municipalities - without Vienna - fell to terrifying one billion euros. The forecasts look bleak: by 2028, every second municipality could be classified as a downhill community if no fundamental reforms are implemented.

The reasons for this concern for concern are complex. Particularly difficult expenses in the federal income shares and the lack of a fundamental property tax reform on the finances of the municipalities. The after -effect effect of inflation and the general economic situation also contribute to the deterioration. In addition, increasing personnel costs, loan interests and energy costs are burdening the output side of the municipalities.

first measures and forecasts

st. Pöltens Mayor Matthias Stadler (SPÖ) criticizes the so -called "overlay terror" and emphasizes that Upper Austria and Carinthia are particularly affected. Despite the measures already in the move from the current government program, the cities and municipalities have to save further. Savings could have serious consequences, especially in the field of education and volunteering.

The KDZ has updated its forecast for the development of community finances by 2028 and presents several scenarios:

• First scenario: No countermeasures, halving the scope for action, every second community becomes a parish.
• Second scenario: higher fees, reduction of staff and performance standards, savings of 375 million euros per year with a 10%reduction in investments.
• Third scenario: No savings measures, adjustment of property tax and ramble dynamics, 560 million euros per year by increased property tax and reduced co-financing obligations.

In order to improve finances sustainably, various measures could be considered. This includes dismissing the municipalities from the financing responsibility for social and health as well as property tax reform. The promotion of community cooperation and the adaptation of fees could also contribute to stability.

economic framework and future prospects

Another analysis of kommunal.at emphasizes that a weak economy and stagnating tendency to consumption further put pressure on the tax revenues of the municipalities. Planned federal projects could also tighten the situation. The KDZ predicts that by the end of 2025 45 % of the Austrian communities will no longer be able to finance their ongoing operation. This makes a fundamental reform of municipal budget financing essential.

Criticism is also practiced against the expansion of municipal tasks, which is often not associated with corresponding financial resources. Innovative approaches to reduce costs, such as the greater integration of parents in kindergarten care or creating call and collective bus systems in rural areas, are required because the municipalities do not have the necessary funds.