Klagenfurt on the verge of financial collapse: indoor swimming pool project in danger!

Klagenfurt on the verge of financial collapse: indoor swimming pool project in danger!

The state capital Klagenfurt am Wörthersee is facing serious financial challenges that could lead to insolvency within a year. This assessment is based on a current report from the Austrian Consolidation Advisory Board, which urgently warns the city administration of the consequences of building a new indoor swimming pool. According to the report, financing the funds required for construction could place a heavy burden on Klagenfurt's already strained finances. In this regard, it is recommended to refrain from this project in order to avoid future financial bottlenecks, which could threaten in the first quarter of 2026 at the latest if no countermeasures are taken. [KOSMO] reports that the Consolidation Advisory Board specifically warns of a debt crisis and recommends that existing funds be carefully managed.

As early as autumn 2024, the city was missing around 52 million euros for ongoing operations. In order to ensure financial stability, an annual consolidation requirement of around 60 million euros is estimated. If the proposed savings measures are implemented, the city's liquidity could be secured until 2027, while abandoning the indoor swimming pool project could even open up financial leeway until 2029.

Core measures for budget consolidation

As a result of the serious situation, the Consolidation Advisory Board has proposed several measures. This includes, among other things, significant job cuts in the municipality: the number of employees is to be reduced by 300 by 2032, which would result in savings of around 20 million euros in running costs. Mayor Christian Scheider emphasizes the urgency of this structural reform in order to improve the city's financial flexibility and make administration more efficient. One consideration is also to reduce the number of days off, such as on Good Friday or All Souls Day, in order to achieve further savings.

A central point in the consolidation plan is the reallocation of the 44 million euro loan originally intended for the construction of the indoor swimming pool. This money could be used to pay off internal loans, which would improve liquidity in the short term. In addition, the aim is to increase the profit distribution of Stadtwerke Klagenfurt to 15 million euros for 2025 and 2026, followed by annual distributions of 10 million until 2029.

Criticism of the indoor swimming pool project

Despite the serious warnings, Mayor Scheider is sticking to the plans for the indoor swimming pool. This course is met with resistance, particularly from the Klagenfurt Greens, who view the project as a “chaotic prestige project”. They advocate a cost-saving alternative at the exhibition center. In the coming weeks, city politicians will deal in detail with the recommendations of the Consolidation Advisory Board; A budget decision for the current year is scheduled for mid-July.

The city's financial situation remains critical and requires a quick and sustainable solution. Measures such as real estate sales are expected to bring in over 30 million euros, and the liquidation of municipal holdings is proposed to avert a possible total financial loss. There is great pressure on the city administration to face the challenges and take immediate measures to avoid insolvency.