Financial crisis in Burgenland: 30 communities are fighting for survival!

Financial crisis in Burgenland: 30 communities are fighting for survival!

In Austria, 30 municipalities in Burgenland are faced with the challenge of consolidating their finances. These communities are not insolvent but need urgent action to put their budgets in order. Mayor Andreas Kacsits from Deutschkreutz has identified a need for savings of at least 100,000 euros, while his colleague Christian Balogh from Nikitsch speaks of 60,000 euros. These numbers illustrate the urgency of the situation.

The legal framework stipulates that a budget consolidation concept is required when the maximum permissible cash loans are reached. This must be approved by the state supervisory authority, with a maximum period of ten years to achieve budget balance. Balogh is confident that the consolidation can be completed this year. Kacsits, on the other hand, is waiting for a meeting with an expert from the state holding company who will offer support free of charge.

Financial difficulties and skepticism

Although Peter Pohl, chairman of Burgenland's magistrates, painted a serious picture of the financial situation and claimed that some communities would no longer be able to pay salaries, this finding is denied by the responsible authorities in the country. However, Pohl stands by his statement that several municipalities are in serious financial difficulties. He has calculated savings of 200,000 euros for some communities around Antau, but sees a deficit of 900,000 euros.

Pohl views the administrative reform, which is discussed as a savings measure in the red-green government pact, with skepticism. According to him, consolidation could only be achieved through stringent savings measures and a realistic view of the municipalities' financial situation.

Consolidation proposals to support

Proposals for consolidating local budgets come from a comprehensive analysis and evaluation developed by the state associations of the Taxpayers' Association. These suggestions are supplemented by recommendations from the interior ministries and municipal auditing institutes. The aim of this advice is to encourage members of local parliaments to critically monitor council and resolution proposals and to clarify fundamental questions, such as compliance with the requirements for the start of construction or the completion of planning.

Some of the specific consolidation proposals cover important topics, including:

• Innere Verwaltung
• Sicherheit und Ordnung
• Schule und Kultur
• Kinder, Jugend und Sport
• Soziales und Senioren
• Planen, Bauen und Umwelt
• Wirtschaftsförderung und Tourismus
• Allgemeine Finanzwirtschaft

These measures are intended not only to contribute to the financial stability of the municipalities, but also to create space for discussions and savings considerations on site. Opportunities to promote and support the affected communities are thus encouraged.

The current developments in Burgenland's municipalities show how important it is to develop clear strategies for financial consolidation. [Kurier] reports that working with experts and implementing savings measures will be critical to the success of these efforts. Further information on consolidation proposals can be found on the [Taxpayers Association website].