City Day 2025: Experts are calling for reform of property tax for sustainability

City Day 2025: Experts are calling for reform of property tax for sustainability

Wien, Österreich - On May 22, 2025, the 74th Austrian City Day took place, which addressed Hot Topics on urban financing and sustainable development. As part of the specialist forum "Innovative financing variants for municipal projects", experts discussed the challenges of financing infrastructure projects, taking into account EU geriatric directives, creditworthiness requirements and ESG criteria, the environment, social responsibility and corporate management. Peter Bald, Managing Director of the KDZ, emphasized the need for a comprehensive mix of measures to secure municipal households in the long term. He called for savings through task criticism, a reform of property tax and a clear unbundling of transfer payments between municipalities and the federal states.

Michael Santer from the municipal loan Austria AG emphasized the favorable refinancing conditions in his lecture, while Martin Zojer from Bank Austria critically asked about the political willingness for alternative forms of financing. Mary-Ann Hayes, ESG expert at Bank Austria, addressed the importance of sustainability in the financing of infrastructure projects, which is increasingly being relevant, especially in the context of the European Green Deal, which aims to make the EU climate-neutral by 2050.

challenges and opportunities through ESG criteria

The discussion about the integration of ESG criteria into the municipal financing strategy is not isolated. These criteria are becoming increasingly important for companies, investors and banks and significantly influence the financing of public infrastructure projects. Sustainability penetrates all areas of life, which puts the municipalities under pressure to take suitable measures. The EU taxonomy, which classifies "green" economic activities, as well as the sustainable finance disclosure regulation (SFDR) create framework conditions that are also indirectly relevant for municipalities, since they have to adapt through the financing conditions for infrastructure projects.

sustainable urban development

Sustainable urban development requires a comprehensive approach that takes into account economic, social and ecological aspects. The conditions for sustainable city life require fair balance between current and future living conditions. In addition, political sensitivity to sustainable urban development has increased in recent years, which requires concrete measures. However, social sustainability in funding programs is often not sufficiently taken into account.

In order to improve the quality of life in cities, the active participation of all interest groups is necessary. Participation and transparent planning can help take into account the interests of citizens and increase social tolerance. Education and information are crucial for the acceptance of sustainable projects, especially in disadvantaged households, which are often the most affected by the challenges of modern urban development. An example of this is the study on the social compatibility of Green Buildings in Hamburg, which shows how far -reaching the acceptance of sustainable construction projects is and where there are still gaps.

The discussions on the city's day and the associated challenges illustrate how important sustainable and future -oriented financing is for the development of cities. Those cities that actively deal with these challenges have the potential to take a leadership role in sustainable urban development.