Municipalities association demand

Municipalities in financial difficulties: municipal summit called for

Red alert! Around a third of all 171 municipalities in Burgenland will no longer be able to balance their budgets in 2025.

(Bild: stock.adobe.com null)

More and more municipalities are getting into financial difficulties: President of the Association of Municipalities calls for a municipal summit, ÖVP calls for a special state parliament. 

The empty municipal coffers are ringing alarm bells. "Now even the financially stable municipalities are being ruined", says Leo Radakovits, President of the Association of Municipalities, speaking of a "dramatic development" in municipal finances. The published budget forecast for revenue shares has shown that the limits of what can be borne have been exceeded.

The development of municipal finances is dramatic. Now even the financially stable municipalities are being ruined at the start.

Gemeindebund-Präsident Leo Radakovits

1.1 million euros less revenue share from the federal government
Because the federal government has to make savings, Burgenland municipalities will have 1.1 million euros less at their disposal in 2025. The costs of two subsidy laws amounting to around 600,000 euros, which were previously borne by the federal government, will also have to be shouldered financially by the provinces and municipalities. However, the ÖVP Association of Municipalities criticizes the state. The deductions for social welfare, assistance for the disabled and youth welfare will increase by up to 46 percent. In addition, an amendment to the municipal code in order to increase cash loans has been canceled, it is said.

Legal review of deductions
The retroactive offsetting of the hospital deduction amounting to 22 million euros is also hitting municipalities hard. "Passing on all these additional burdens to the municipalities is a cheek," Radakovits says angrily. He is on red alert. "Because there are more and more deductions, the municipalities lack the financial scope to offer services and there is no question of investment," says the President. His proposal: a municipal summit to find a solution to curb the financial flows. There would also be a legal review of the state deductions.

ÖVP has requested a special state parliament
Meanwhile, the People's Party has requested a special provincial assembly on the topic of "SPÖ all-party government must act immediately: Fair financial relief for the 171 municipalities". SPÖ parliamentary group chairman Roland Fürst commented: "The convening of the special provincial assembly cannot be surpassed in hypocrisy. At the beginning of the year, the ÖVP rejected the municipal relief package of 38 million euros per year and is demanding one just before the state elections." This is pure voter deception.