Coping with crisis on the 74th City Day: Municipalities are fighting for survival!

Coping with crisis on the 74th City Day: Municipalities are fighting for survival!

Wien, Österreich - The 74th Austrian City Day, which took place on May 22, 2025, focuses on the financial challenges of cities and municipalities. Mayor Werner Krammer from Waidhofen an der Ybbs and Mayor Elisabeth Böhm from Neusiedl am See discussed with experts such as Karoline Mitterer from the KDZ and Andreas Ochs from the German Association for Local Management (KGSt) about the options for action in difficult financial positions. The event was moderated by Eva Linsinger (ORF).

The central topic was the demand for better financial resources by the federal government and the federal states. According to the participants, many municipalities are already under pressure: Up to 40% could no longer finance their ongoing expenses on their own. These alarming forecasts are underlined by the findings of the KDZ, which predicted a negative free financial tip by around every second community by 2027. This scenario includes in particular challenges in financing investments, especially in the areas of climate protection and mobility.

options for action and increase in efficiency

The experts developed proposals for increasing efficiency, which require a restructuring and reorganization with a sense of proportion. These include community cooperation in childcare, smart tour planning for garbage disposal and the operation of local outdoor pools by clubs. In addition, the participants emphasized the need for citizens' budgets and participation processes that help to achieve financial savings and to strengthen the sense of responsibility among the population

Krammer emphasized the importance of a solid financial basis for investments in education, support and infrastructure. Andreas Ochs also explained that the consolidation of households means to spend less than to accept it and use the issued. In view of the impending austerity measures in many municipalities, innovative solutions and new financing models must be explored.

liquidity and future prospects

The liquidity of the communities is on the brink. Current forecasts indicate that public budgets will be under pressure in the coming years. The public savings rate could drop from 13–15% before the crisis to long -term values ​​of 5–9%. The KDZ points out that expenses in 2024 are expected to increase more than the income, which requires fundamental reforms to increase efficiency and increase the potential for revenue, such as a property tax reform to ensure general services in the municipalities

In addition, considerations for the merging of sub -assembled facilities, such as schools and kindergartens, as well as for adapting fees and performance fees were made. Such measures are necessary to secure the financing of municipal general services, because without additives from the federal government or the federal states, the municipalities are facing painful restrictions.

How the financial challenges can be managed further remains a central question that will deal intensively in the coming months in the coming months. There is a need to stabilize financial scope in order to be able to guarantee the quality of life in the cities and municipalities.

summarized, the consultations on the city day show that time for decision -makers in the municipalities is urged and innovative solutions are required. Long -term improvements in the municipal financial situation can only be achieved through close cooperation with the federal states and the government.

For more information see [wien.gv.at reports] (https://presse.wien.gv.at/presse/2025/22/74-staedtag-buermeister-krammer-konsolidung-gorge-neulord-mit- iemass), [KDZ about consequences for Municipalities] (https://www.kdz.eu/de/aktuelles/blog/welche-konsefquenzen-aufen-aufgrund-der-schwierigen- Financial) and [KDZ to municipal finances up to 2027] (https://www.kdz.eu/de/aktuelles/blog/gemeindefinanz-bis-2027-finanzise-spielraeume-der-gemeinden-auf-tive-des