Suche
Mein Konto
Klagenfurt in financial distress: impending insolvency – austerity measures urgently needed!
Saarland is facing financial challenges: insolvency warnings and austerity measures are necessary for budget consolidation.
Klagenfurt in financial distress: impending insolvency – austerity measures urgently needed!
The city of Klagenfurt am Wörthersee is facing serious financial challenges. According to a report by the Austrian Consolidation Advisory Board merkur.de refers, insolvency could occur within a year if no measures are taken. A massive consolidation requirement of around 60 million euros per year has to be met, although the deficit for ongoing operations in autumn 2024 was already 52 million euros.
The planned new construction of an indoor swimming pool should receive particular attention, the financing of which is currently classified as risky. The experts advise against the construction plans because they fear that this step could put additional strain on the city's finances. If the city implements the recommended savings measures, it could make ends meet financially until 2029, according to the experts.
Critical reforms in focus
Mayor Christian Scheider emphasizes the need for structural reforms to reduce costs and increase efficiency. The measures include the reduction of 300 jobs by 2032, which is expected to result in savings of around 20 million euros per year. Another consideration is to reduce the number of days off work in order to generate additional financial resources.
The main committee of the German Association of Cities, as in another report staedtetag.de reading highlights the fundamental challenges at the local level. In 2024, a deficit of more than 13 billion euros is forecast for German cities, municipalities and counties, indicating a structural crisis compounded by weak growth and various legal obligations. Comprehensive, structural changes are required here.
Financial perspectives and government support
The precarious financial situation will continue to be tense for Klagenfurt and other cities in the coming years. There is an urgent need to be able to make meaningful savings in order to continue to meet legal obligations. The danger of a crisis in the welfare state is also noticeable, as new or expanded state benefits can only be further financed by cutting others.
In order to solve the problem of old debts and avoid new debts, the Association of Cities is calling for, among other things, a higher share of sales tax revenue. A reform of the debt brake could only make sense if it is used to invest in infrastructure and education without reducing the pressure for consolidation.
In summary, Klagenfurt urgently needs the implementation of austerity measures and effective reforms to avert financial uncertainty. The coming months are likely to be crucial - a good hand is needed to get the city back on a stable course. Further information about the city's situation can be found at kaernten.orf.at be read.