Cities Association Wants Quick Agreement on Stability Pact

The Association of Cities is insisting on an agreement on the Stability Pact as well as property tax. The financial situation of the municipalities is precarious, emphasized its president, Vienna's Mayor Michael Ludwig (SPÖ), in a statement on the occasion of the executive board meeting on Wednesday. Half of the cities are already deficit municipalities. In the largest federal state by area, Lower Austria, every third municipality already has to consolidate its budget.

Ludwig sees "imperative of the hour"

"Cities and municipalities have taken on many additional tasks in recent years," emphasized Ludwig. He mentioned the areas of health, care, and elementary education. However, adequate funding is lacking. "It is therefore the imperative of the hour to provide cities and municipalities with the necessary funds for public services," demanded the Association of Cities president once again. Services such as kindergartens, public transport, waste collection, and fresh drinking water support the daily lives of all citizens.

Property Tax and Stability Pact

In this context, Ludwig emphasized the importance of a rapid agreement on the Stability Pact. This should recognize the importance of cities and municipalities with its new debt rules and be concluded in their favor. Association of Cities Secretary General Thomas Weninger also pointed out the necessity of a property tax reform. This would significantly contribute to complying with the rules of the Stability Pact. In the short term, the assessment rates would first need to be increased from 500 percent to 750 percent, which would bring cities and municipalities about 396 million euros per year.

(APA/Red)

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