Already the government’s third support package, but without structural reforms, expenditures continue to grow rapidly while revenues lag behind.
A few days ago, the federal government promised municipalities and cities a billion euros as anti-price support. This will enable them to build photovoltaic systems on public buildings or district heating networks and other infrastructure such as roads and kindergartens with €500 million each over the next two years.
Emergency assistance almost permanent
“That is generous, but we have ongoing investments in sewerage, roads, etc. in every municipality that cannot be postponed,” Alfred Riedl, president of the Association of Municipalities, said with relief. Such investment packages already existed in 2017 and 2020 with a total volume of 1.175 billion euros. The fact that such emergency aid has become almost permanent is not only due to the crisis, but also to the long-standing structural problems in municipal finances. What that means.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
