Precarious situation in towns

Head of Upper Austria announces aid package for municipalities

Governor Thomas Stelzer (ÖVP).

(Bild: OÖVP/Peter C.Mayr)

The financial situation in the municipalities of Upper Austria is coming to a head: as of now, 107 municipalities need a cash injection in order to balance their budgets. Governor Thomas Stelzer (ÖVP) has now announced an aid package for these 107 municipalities, but there could be even more. 

The red state councillor Michael Lindner, who is responsible for the SPÖ-led municipalities in the state government, already made it a major issue at the beginning of the year: he estimated that up to 200 municipalities would no longer be able to achieve a positive balance. The reasons for this: high payments to the state, higher interest rates on loans, rising costs for staff at the municipal offices.

In the end, there were not quite that many. Provincial head Thomas Stelzer knows that 107 municipalities currently need support. "This clears the fog and we can make a serious assessment of how high the need actually is," says the ÖVP politician in an interview with Krone.

Governor promises: "We won't leave anyone on their own"
Stelzer is currently having experts carry out financial calculations and is also promising an aid package for the municipalities so that they can meet their financial obligations. "This package must be worked out seriously, after all, it's taxpayers' money. We will handle it carefully. But it is clear that we are not leaving anyone on their own." However, the head of the state also holds the federal government accountable, as there was the announcement of a billion in municipal funding.

30 municipalities have not yet reported their budget
Incidentally, it is still unclear whether the 107 municipalities in need of aid will remain. This is because no budget has yet been received from the 30 municipalities that have registered for the hardship compensation fund.