Klagenfurt on the verge of financial collapse: 60 million euros in savings needed!

Klagenfurt on the verge of financial collapse: 60 million euros in savings needed!

Klagenfurt am Wörthersee is facing a serious financial crisis that could lead to insolvency if immediate action is not taken, according to reports from the Austrian Consolidation Advisory Board. Within a year, at the latest in the first quarter of 2026, there is a risk of insolvency if the city does not cover the urgently needed consolidation needs of around 60 million euros per year. The report highlights that 52 million euros were already missing for ongoing operations in autumn 2024, which underlines the urgency of appropriate reforms. Loud Mercury a comprehensive restructuring of the city's finances is unavoidable.

In order to avert the threat of insolvency, the Consolidation Advisory Board recommends a series of cost-cutting measures, which include, among other things, staff cuts and the reduction of days off. The construction of a new indoor swimming pool, which Mayor Christian Scheider is supporting, is expressly viewed as problematic as it could put a considerable strain on the budget. Experts warn that without austerity measures, the city's liquidity could be exhausted by 2027 if the indoor swimming pool project is continued.

Planned austerity measures and reforms

The city of Klagenfurt plans to achieve annual savings of around 20 million euros by reducing the number of jobs by 300 by 2032. Furthermore, a reallocation of the existing loan for the indoor swimming pool in the amount of 44 million euros is proposed in order to repay internal loans and realize urgently needed investments. Additional measures could include the sale of urban real estate worth over 30 million euros as well as increasing the municipal utility's profit distribution to 15 million euros in 2025 and 2026.

• Jährlicher Konsolidierungsbedarf: 60 Millionen Euro
• Stellenabbau: 300 Mitarbeiter bis 2032
• Geplante Einsparungen: rund 20 Millionen Euro
• Immobilienverkäufe: über 30 Millionen Euro

A discussion about further cost-cutting measures, such as closing the city gallery and giving up city shares in the airport to avoid future subsidies, is also underway. The Klagenfurt Greens criticize the indoor swimming pool project as a “chaotic prestige project” and suggest that cost-saving solutions be examined at the exhibition center instead. Despite the warnings from the consolidation advisory board, Scheider is sticking to the plan for the indoor swimming pool.

Political reactions and outlook

City politicians are currently discussing the report of the Consolidation Advisory Board, and the budget decision for the current year is expected in mid-July. Mayor Scheider emphasizes the need for structural reforms to reduce costs and increase efficiency as financial challenges become more pressing. The Consolidation Advisory Board is calling for haste to protect the city from possible insolvency and to set the course for a stable financial future. Loud Cosmo Liquidity could be secured until 2029 simply by comprehensively implementing the recommended savings measures and foregoing the indoor swimming pool project.