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Stability Pact - Municipalities: Ministry's Plan Includes Zero New Debt

Johannes Pressl.
Johannes Pressl. ©APA/HELMUT FOHRINGER (Symbolbild)
In the plan of the Ministry of Finance, it is intended that the municipalities will have zero new debt by 2030, according to Municipal Association Chief Johannes Pressl (ÖVP) on Thursday at a press conference.

The municipalities are indeed willing to meet this requirement. However, more funds would need to be made available or the municipalities would need to be relieved of tasks. They themselves want to save through "multi-service associations."

Municipal Chief for Higher Property Tax

Pressl emphasized that it is necessary to have corresponding commitments on the revenue side to achieve the goal. Once again, the municipal chief insisted on the long-discussed increase in property tax and that shares from the CO2 levy and digital tax should also flow to the municipalities. Less known so far was the demand for a VAT exemption for services between municipalities. Currently, they are penalized for collaboration.

Anyway, for Pressl, more efficient collaboration among municipalities is a central issue. Specifically, he is focusing on the expansion of "multi-service associations," to which tasks from several municipalities can be transferred. This model is already widespread in waste disposal, and other topics could include IT infrastructure, construction, and personnel provision. Such constructions would not call into question the local individual municipality, Pressl emphasized.

Pressl Wants to Focus Strongly on Digitalization

The municipal chief wants to focus strongly on digitalization in managing tasks in the municipalities. He envisions a municipal app store where municipalities could download the tools important to them.

The Municipal Association has long proposed that municipalities could completely take over the financial area of childcare as part of an administrative reform, but in return, they would no longer have to make payments for healthcare. Furthermore, Pressl has ideas on how childcare could become more affordable for municipalities. He supports an apprenticeship for elementary education, which would ultimately result in lower costs than for academically trained educators.

Municipal Day in October in Klagenfurt

The proposals will be bundled in a resolution to be adopted at the Municipal Day in Klagenfurt on October 2 and 3. Whether the new stability pact will be in place by then is unclear. Pressl answered vaguely whether there had been progress in yesterday's round. It is always like this in negotiations. Sometimes you are closer together, sometimes further apart. The municipal chief also left open the chances of implementing a property tax reform. Here too, negotiations are still ongoing.

(APA/Red)

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

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