ÖVP, FPÖ and SPÖ agree

ÖVP and SPÖ agree: financial package for municipalities

When it comes to municipal finances, every euro counts.

(Bild: stock.adobe.com - PhotosD)

Criticism from mayors and the SPÖ reached its peak this week: more than 100 municipalities in Upper Austria can no longer balance their accounts, which according to SPÖ provincial councillor Lindner is mainly due to the high payments to the state. Today, Friday, a breakthrough was achieved: LH Thomas Stelzer (ÖVP) says to the "Krone" that an additional 50 million euros will be made available to the municipalities.

The details of this were revealed in the course of the morning. According to the report, the state of Upper Austria is taking an additional 50 million euros and distributing it to all municipalities. It will depend on the number of inhabitants and the ranking in terms of financial strength. In concrete terms, this means that not only municipalities in hardship compensation (municipalities in decline) receive money, but all municipalities - including the cities.

Governor Thomas Stelzer and ÖVP Municipal Affairs Officer Michaela Langer-Weniger told the "Krone" newspaper this morning: "A minimum amount of 60,000 euros has been set, which each municipality will receive as a fixed amount."

Provincial Councillor Michael Lindner told the "Krone" in advance that he was satisfied with the success of the negotiations. "However, we must generally put the financing for the municipalities on a new footing, as the financial burden on the municipalities is becoming ever greater," said the SPÖ politician. 

The "Krone" recently reported extensively on the contributions of SPÖ municipalities in particular: A list shows that as of Wednesday this week, 16 municipalities have already applied for 12.055 million euros from the hardship compensation fund. This sum is needed to balance the books and eliminate the deficit in the respective municipality's finances. 

SPÖ municipality of Ebensee alone needs 3.2 million euros
The SPÖ-led market town of Ebensee in the district of Gmunden has registered the greatest need: The Traunsee town needs 3.2 million euros from the state to balance its budget - the highest figure in Upper Austria. Over one million euros are also needed in the districts of Steyr-Land and Perg: Weyer has applied for 1.7 million euros, the market town of Ried in der Riedmark needs just under 1.3 million euros - the full list can be found here . 

Stelzer wants to present the municipal package today, Friday.

(Bild: Peter C. Mayr)

LH Stelzer: "We are fighting with each other, not against each other " 
Governor Thomas Stelzer announced an aid package for the municipalities in the "Krone" newspaper on Monday, for which a political agreement has now been reached. He said at the time: "The fact is that the challenges posed by the tense economic situation are affecting the state, municipalities and cities in equal measure. We as a federal state must therefore also go into debt this year. We are fighting together, not against each other, and we are not leaving anyone on their own. We are in close contact with the municipalities and cities."

SPÖ provincial councillor Michael Lindner, who is responsible for the red municipalities in the province in his role, recently put a lot of pressure on them.

(Bild: Dostal Harald)

Lindner called for municipal financing to be put on a completely new footing and also exerted pressure: "It is high time to put the transfer relationships between the state and municipalities on a new footing," he told "Krone".

Lindner proposes suspending the hospital contribution
According to Lindner, a noticeable reduction in transfer payments to the state could provide a remedy. Specifically, he proposes suspending the hospital contribution: This would not only simplify payment flows, it would also leave the municipalities with more money for their own projects. This would leave the municipalities with almost 430 million euros, Lindner calculates.