900 million euros for municipalities: How to benefit now!

900 million euros for municipalities: How to benefit now!

Österreich - The Austrian communities are faced with significant financial changes that are initiated by a new budget design. OE24 reports that municipalities can benefit from relieved funds, although no new money is provided. Finance Minister Markus Marterbauer (SPÖ) emphasizes that promised funds can now be called up and used more flexibly. A total of almost 900 million euros are available, as State Secretary Barbara Eibinger-Miedl (ÖVP) informs.

These funds come from three municipal investment laws of recent years, where many municipalities could not use them due to inadequate co-financing. These CO financing is now eliminated, and the purpose grants will be converted into direct financial allocations. The use of these funds is made more flexible as long as the investments are implemented in a controlled manner.

claims and investments

Marterbauer welcomes measures that help communities save costs and become more attractive for influx, for example by expanding childcare. Eibinger-Miedl emphasizes the economic relevance of the measures because municipalities act as important investors for the regional economy. These funds should be sent to the municipalities directly without an application, so that the amount of funding can be called up online within a few days.

The total amount of the funds provided amounts to 881 million euros. These investments are intended to help the municipalities "win over the upper water again," emphasizes the municipal association President Johannes Pressl. City Association General Secretary Thomas Weninger demands a rapid improvement in the financial situation of the communities to ensure their stability.

forecasts and challenges

The forecasts on the financial situation of the municipalities are, however, worrying. According to the KDZ Center for Administrative Research, results show that around every second municipality will have a negative free financial tip by 2027. Difficulties in financing necessary investments, especially in climate protection and mobility area, are already foreseeable. KDZ notes that the liquidity of the municipalities remains at a low level. % expects, while the income could only increase by 4-5 %.

By the end of 2025, 45 % of Austrian communities could no longer cover their ongoing operation, which leads to an increased need for financial aid. Kommunal points out that both a property tax reform and a better division of income from the partial withdrawal of the cold progression are necessary to strengthen the financial basis of the municipalities.

conclusions

While the new funds could offer a short -term relief, the long -term financial stability of the communities remains questionable. The need to secure the financing of municipal services and the requirements for increases in efficiency are urgently required to meet the challenges of the coming years. The political pressure on the communities to support local businesses and services is intensified, which requires even more careful planning and organization.