The Tyrolean mayors will meet in Ehrwald on Wednesday for the community day. President of the community association Karl-Josef Schubert comments on the main topics in the “Krone” interview. And he clearly opposes housing speculation: “Why should young people be willing to work extra if owning their own home is unaffordable?”
“Krone”: What is the financial situation of the communities?
Schubert: The situation is tense. The reason is the recession, which brings lower tax revenues and profit shares. Compared to 2023, we still expect an increase of three to 3.5 percent, but this can only be achieved through a federal liquidity injection of EUR 300 million for Austrian municipalities. Tyrol accounts for 19 million euros of this. There are also subsidies through the municipal investment program (KIP) and the state future fund. However, the gap will continue to widen. The increases in expenditure are between 5 and 8 percent, caused by valorization of wages and salaries up to 5 percent, by higher social expenditure such as minimum security, where 6 to 8 percent can be expected, and by 3 percent inflation. There are also new tasks such as the bathroom package. Despite investment incentives and subsidies, the scope for municipalities is becoming increasingly smaller. The debt level now stands at 1.2 billion euros. The average level of debt is increasing and freely available resources are decreasing. The communities will not be able to make big leaps.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
