1. City Day in Eisenstadt: Ludwig demands urgent financial reforms!

<Ol> <li> City Day in Eisenstadt: Ludwig demands urgent financial reforms! </li> </l>

Eisenstadt, Österreich - On May 21, 2025, the 74th Austrian City Day took place in Eisenstadt, an important event that was opened by Mayor Michael Ludwig, President of the Association. The focus was on the alarming financial situation of the cities and municipalities, which stimulated a fundamental debate about necessary structural reforms and improved financing models. Host of the event, Mayor Thomas Steiner, emphasized the unique opportunity of this meeting in the anniversary year of 100 years of the state capital Eisenstadt.

The participants discussed the precarious financial situation of the municipalities, which is accompanied by an expected deficit of over 13 billion euros in 2024, with similar forecasts for the coming years. This shows a fundamental crisis that differs greatly from previous financial bottlenecks. A central discussion point was the demand for more financial resources from the federal government and the federal states in order to enable cities to fulfill their obligations. These topics were also taken up in the municipal finance forecast of the KDZ - Center for Administrative Research, which states that only 40 cents of one euro will be received by 2028 cities and municipalities, compared to over 50 cents in 2019.

urgent need for action

The City Association General Secretary Thomas Weninger presented the detailed course of the city day, which included speeches by Interior Minister Gerhard Karner and the State Councilor Leonhard Schneemann as well as a video message by Federal President Alexander Van der Bellen. The dramatic budget situation was also emphasized, which extends across all federal states from Burgenland to Vorarlberg and is a danger to central services such as education and infrastructure.

The discussion was primarily about future challenges, such as the climate crisis and the energy transition, in which cities want to take a pioneering role. The revision of the municipal financing structures is essential, especially with regard to financial equalization and property tax. The municipalities require structural changes such as a higher proportion of VAT and a solution to the old debt problem to avoid new debt, as can be seen from the decisions of the main committee of the city of the city.

financing challenges

The main finance sources of cities and municipalities are own taxes, in particular the local and property tax, as well as income from fees and fees. According to the experts from the Austrian Association of Cities, it is crucial that sufficient means are provided to perceive the legal obligations of the municipalities. It was also emphasized that new or extended state services and tax cuts can only be financed by restrictions on other services.

These considerations clarify that the future of cities and municipalities is seriously at risk without a solid financial basis. The reform of the debt brake should go hand in hand with the creation of additional debt scope for infrastructure and education in order to expand the local scope for action. The necessary balance between consolidation and improvement in the financial situation must not be lost sight of.

The city day will continue on May 22, 2025 with four working groups and specialist forums for the energy transition and innovative financing variants. Interested parties can call up more information on the city association's website.