Federal States See Few Opportunities to Contribute to Budget Consolidation

Following the Governor of Upper Austria, the Styrian Governor Mario Kunasek also sharply criticizes the demands for a greater contribution from the federal states to budget consolidation. Other states express less harsh criticism but also see little potential for savings. Municipal Association President Johannes Pressl also points to the strained financial situation of the municipalities.

Carinthia and Vienna see responsibility for poor budget with the federal government

Already on Thursday, Upper Austria's Governor Thomas Stelzer (ÖVP) indignantly rejected the "calls from Vienna." The Styrian Governor Mario Kunasek (FPÖ) reacted similarly. The announcement by Finance Minister Markus Marterbauer (SPÖ) and State Secretary Barbara Eibinger-Miedl (ÖVP) that the hand was extended towards the federal states sounded "like a dangerous threat to the state budgets of the federal states," Kunasek said in the "Presse" (Friday). The federal states are the supporting pillars of the republic and should therefore be "much more relieved," demanded the Freedom Party Governor.

Milder tones came from Carinthia, Vienna, Lower Austria, and Vorarlberg, but even here, little room for savings is seen. Carinthian Governor Peter Kaiser (SPÖ) stated that the states, in his view, "stand as responsible partners with an outstretched hand." At the same time, he shifted the responsibility for the budget crisis towards the federal government, where the last government "mixed a dangerous cocktail of wastefulness, incompetence, clientelism, and secrecy," Kaiser said in the "Presse." This particularly affects states and municipalities, so savings cannot be made. Rather, more money is needed in the form of "a rapid and significant relief and support for the states and municipalities."

Vienna's Mayor Michael Ludwig (SPÖ) also sees the blame at the federal level. "The federal government has made decisions in recent years with strong negative impacts on states and municipalities," Ludwig said in the "Salzburger Nachrichten." It is clear that measures must be taken, and Vienna will save 500 million euros this year as planned. In the future financial equalization, the distribution of tax revenues must develop more in favor of the states and municipalities, he demands in the "Kleine Zeitung."

The Green budget spokesman Jakob Schwarz countered in a written statement that the 2024 budget was "Maastricht-compliant": "Everything indicates that the states are not adhering to their forecasts, which is a significant cause of the Maastricht violation." The states must also contribute to the savings package. Schwarz also advocated for a federalism reform.

Budget Renovation: Mikl-Leitner Does Not Want to Conduct Budget Negotiations Through the Media

"Budget negotiations are certainly more successful when conducted at the negotiation table and not through the media," explained Lower Austria's Governor Johanna Mikl-Leitner (ÖVP). Federal states and municipalities have enormous tasks in the areas of health, care, and childcare. "That is where our focus lies - and especially Lower Austria demonstrates with the Health Plan 2040+ and the administrative reform that we are working on future solutions across party lines," said Mikl-Leitner.

The Governor of Vorarlberg, Markus Wallner (ÖVP), showed a diplomatic stance. He gladly accepted the invitation to talks: "We all need to sit down together and talk about reforms, not just about money," Wallner said in the "Vorarlberger Nachrichten". Salzburg's Governor Wilfried Haslauer (ÖVP), who currently chairs the Governors' Conference, had already opposed "short-term austerity measures at the expense of the regions" on Wednesday but signaled readiness for reform. There were initially no reactions from Burgenland and Tyrol.

Financial Situation of Municipalities Already Strained

Municipal Association President Pressl pointed to the extremely strained financial situation of the municipalities for years. "If the federal government now expects billions in contributions from us for the budget, we would have to close kindergartens, discontinue school afternoon care, and cut our contributions for hospitals and care," warned Pressl in response to an APA inquiry. "No one will want that, so let's all sit down together and discuss where there are savings opportunities in the system," said the Municipal Association President, assuring the municipalities' readiness for reform. According to calculations by the Center for Administrative Research (KDZ), municipalities (excluding Vienna) would be missing 1.4 billion euros in the budget. About 45 percent of the municipalities could therefore no longer balance their budget this year without help from the federal and state governments.

(APA/Red)

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