Municipalities Demand Stable Finances and Bold Reforms

In a recent press conference, the leaders of the Austrian Municipal Association and the Carinthian Municipal Association addressed the pressing financial challenges faced by local governments ahead of the 71st Austrian Municipal Day in Klagenfurt. The event, which will take place on October 2-3, is expected to host over 1,800 mayors, municipal council members, and local government employees, alongside key figures from federal and state politics, including the Federal President and the Federal Chancellor.

Günther Vallant, President of the Carinthian Municipal Association, highlighted the dire financial situation of municipalities in the region, exacerbated by rising costs and increasing responsibilities. He noted that approximately 70% of municipalities in Carinthia are currently experiencing budget deficits, a stark contrast to the national average of 50%. Vallant emphasized the critical role municipalities play in providing essential services such as childcare, healthcare, and infrastructure, arguing that immediate action is necessary to ensure their sustainability.

Johannes Pressl, President of the Austrian Municipal Association, pointed out that a recent survey revealed a strong level of trust among citizens towards their mayors, with half of the respondents expressing confidence in their local leaders. He asserted that this trust comes with the obligation for local governments to make difficult decisions and for federal and state authorities to establish fair financial conditions for municipalities.

Pressl discussed the ongoing negotiations surrounding a Stability Pact aimed at reducing new debt for municipalities. He reiterated the commitment of local governments to adhere to the pact, which aims for zero structural new debt by 2030. He stressed that achieving this goal would require both ongoing efficiency improvements and a fair distribution of federal tax revenues, including the involvement of local governments in initiatives like CO2 pricing and the digital tax.

In the afternoon, the members of the Municipal Association's federal board will convene to discuss and adopt a comprehensive resolution focusing on three main areas: securing municipal finances to ensure operational capability, implementing reforms and administrative innovations, and enhancing digital governance for citizens. Key proposals include equitable participation in tax revenues, reforming property tax policies, clarifying responsibilities between federal, state, and municipal governments, and expanding digital infrastructure.

Pressl concluded by reinforcing the municipalities' readiness to shoulder responsibility, stating that the trust placed in them must be reciprocated with transparency and accountability from the federal government regarding financial support. He called for courage in enacting reforms and pledged full support for measures that reduce bureaucratic burdens.

For more information about the Municipal Day, visit www.gemeindetag.at.