City Day Takes Place in Eisenstadt

At the 74th City Day in Eisenstadt, starting Wednesday, the strained finances of cities and municipalities are the focus. "This is a very pressing situation," emphasized Vienna's Mayor Michael Ludwig (SPÖ) at a press conference. He continues to call for a change in the vertical distribution key in the financial equalization and more money for the municipalities from the levies retained by the states. Additionally, he wants to discuss a new stability pact.

Ludwig for Change

The vertical distribution key, which allocates 68 percent of the collected tax revenues to the federal government, 20 percent to the states, and 12 percent to the cities and municipalities, must be changed in favor of the latter, said Ludwig. "The tasks that the municipalities have taken on are growing more dynamically than the tasks of the federal government," noted the President of the Association of Cities. The associated increase in costs must also be reflected in the distribution of finances.

At the same time, there is also a shift to the detriment of the municipalities in the levies collected by the states. "At some point, the time will come when municipalities are no longer able to fulfill their tasks with the quality that people rightly expect," emphasized Eisenstadt's Mayor Thomas Steiner (ÖVP). A large part of public services is provided by the municipalities. "People find their home in the cities. Quality of life is generated in the cities," he stressed.

Other Topics

Other topics that will occupy the approximately 1,300 participants of the City Day include the new stability pact, strengthening the economic location and labor market, mobility, climate protection, and gender equality. The goal is to shape municipal politics in such a way that engagement is also attractive for women, said Ludwig. The second mandatory kindergarten year, which the federal government has also advocated for, is not only important for integration but also for the compatibility of family and career.

Eisenstadt Venue for City Day

That Eisenstadt is allowed to host the City Day in its anniversary year - 100 years of being elevated to the capital of Burgenland - pleases Mayor Steiner. Even though the view of the budgetary situation dampens the mood: "It really takes the joy out of celebrating." At the same time, it is a challenge to organize such a large event. "That's why we didn't apply for the Eurovision Song Contest. We are focusing on the City Day," joked Steiner.

Regarding the proposal by Burgenland's Governor Hans Peter Doskozil (SPÖ) to abolish the Austrian Health Insurance Fund (ÖGK), Ludwig stated that the regional authorities would generally need to agree on a structural reform and the future of the health and care system.

Van der Bellen: "Budget is a Balancing Act"

On Wednesday afternoon, the City Day was officially opened at the cultural center with numerous speeches. Federal President Alexander Van der Bellen - who is currently in Japan - spoke in a video message about the budget as a "balancing act": "The budget dictates that savings must be made. You have to ensure that it works out well." Savings should not be made "at the expense of quality of life, social cohesion, and the future." So far, cities and municipalities have managed this balance "perfectly." In the future, even more compromises will be necessary: "If we want to achieve something together, we must come a little closer to each other and recognize our country again as a joint project to which everyone contributes a part." However, the Federal President expressed confidence: "Even if it challenges us, I am confident that we will manage it together."

At all levels, people are confronted with "tight and narrow budgets," explained Interior Minister Gerhard Karner (ÖVP), who was present on behalf of Federal Chancellor Christian Stocker (ÖVP): "It will only work together to handle these tight budgets." As an example of good cooperation, he referred to the measure presented on Monday for municipalities, which massively facilitates subsidized investments for them: "This is pragmatic, sensible, proper cooperation." However, this can only be a first step: "Further steps must follow." The cooperation between cities and municipalities could be intensified, and there should be "no taboos" in the cooperation between authorities. "Of course, these discussions must be conducted on an equal footing to bring about solutions in the interest of the population," said the Interior Minister.

Municipal Association President Pressl: "Let's Tackle It"

Lower revenues with rising costs, these are the challenges facing cities and municipalities - the demand for a change in financial equalization is therefore correct, emphasized Burgenland's State Councilor Leonhard Schneemann (SPÖ) on behalf of Governor Doskozil. "No municipality should go bankrupt," Schneemann referred to the measures at the state level, such as the Municipal Fund Act or the municipal package currently being negotiated.

Municipal Association President Johannes Pressl also appealed to the partnership, as it is needed "more than ever." In view of tight budgets and ever-new tasks, he emphasized: "When it gets tight, we must also say no, which is not easy. All the more, we need cohesion." Pressl referred to the economic, geopolitical, and technical changes and demanded: "Let's not just watch these changes. Let's tackle them. (...) In crisis lies an opportunity."

(APA/Red)

This article has been automatically translated, read the original article here.