Land Governors' Conference in Styria Before Start

Budget, finances, and reform partnership - these are the topics the governors will address by Friday noon at their conference under the leadership of Governor Mario Kunasek (FPÖ) at Seggau Castle in southern Styria. Finance Minister Markus Marterbauer (SPÖ) will informally discuss the financial situation with the state leaders on Thursday.

The state leaders are hosting Finance Minister Markus Marterbauer (SPÖ), with whom they are currently negotiating a new stability pact. The climate has recently been strained by reported figures indicating that the states are performing significantly worse budget-wise than expected this year. However, Marterbauer was accommodating before the meeting.

Speaking to journalists upon his arrival, the minister stated that they would do what is always done in Austria: "We talk to each other, analyze, and resolve the situation." Marterbauer did not confirm the reported figures - suggesting that due to the states, the deficit would be 4.9 instead of 4.5 percent of GDP.

Ministry has only one figure

The minister explained that so far, they have received only one figure of financial development from the states, which applies to all collectively. This means how it is distributed among the federal states has not yet been communicated to the finance department. This new figure will now be "matched" with the data continuously coming in from Statistics Austria, and a solution will be found on this basis.

Marterbauer also denied that the negotiations on the stability pact had stalled. Only one meeting was canceled by the states for scheduling reasons. They are now looking for a "timely" new date. Whether one or two more rounds are needed, he does not know. In any case, there will be no conclusion at the governors' conference: "We will talk about it, but not agree on anything here."

Marterbauer already sees federal concessions

Marterbauer downplayed the criticism from the states that the federal government wanted to claim 90 percent of the borrowing capacity in the stability pact. That was a proposal from the first meeting. It is "by far" not the current negotiating position.

The main part of the governors' conference will take place on Friday at Seggau Castle in southern Styria, with the finance minister already having departed. Missing will be the Burgenland governor Hans Peter Doskozil (SPÖ), who still needs to rest after his recent surgery. At the official level, Burgenland will be represented by State Office Director Ronald Reiter.

Reiter instead of Doskozil at Governors' Conference

Thursday afternoon, the leaders of the states will arrive - at least those who can participate. The governor of Burgenland, Hans Peter Doskozil (SPÖ), still needs to rest after his recent surgery. Doskozil will be represented by State Office Director Ronald Reiter.

Vienna's Mayor Michael Ludwig (SPÖ) had already announced last weekend the topics he wants to address at the conference: He aims to work towards a joint approach by the state leaders on e-commerce. Specifically, the federal government should be urged to strengthen local trade while holding online corporations accountable. It is demanded that the enforcement of European safety standards should be more consistent. The tax component is also brought up. Due to the splitting of shipments into partial deliveries, customs duties are often not paid, it is said. The low prices compared to domestic products also result in significant tax revenue losses, it is lamented. Another proposal from Ludwig deals with medication safety.

Upper Austria's Thomas Stelzer (ÖVP) primarily wants to address the financial situation of states, municipalities, and the federal government: "The states are under massive pressure with their dynamically growing tasks, such as in health and care, while they are not adequately considered in new federal tax revenues. Even though Upper Austria is the only federal state that manages to comply with the Maastricht criteria, these developments are a challenge even for us. We states must act together and with one voice to steer the negotiations on the Stability Pact in the right direction. Because it is clear: The federal government is responsible for the majority of the debt," Stelzer made clear before the conference. A second central theme for him is the reform partnership between the federal government and the states. "The start in early summer was ambitious, but now we need speed. It's about moving from headline level to results - that's currently too slow for me."

Tyrol's Governor Anton Mattle (ÖVP) also wants to address the budget issue at the state governors' conference: "Weakening revenues and a very dynamic development in expenditures have significantly worsened the situation of the states and municipalities in recent years," it was said from his office to the APA. Additional revenues, such as the CO2 levy or energy crisis levies, "were designed by the federal government - regularly without the consent of the states - as exclusive federal levies." The "scope of action of the states" should therefore not be "further restricted." Additionally, Mattle comes to Styria with a proposal for the "Austria surcharge." This is intended to signal that Tyrol supports the federal government on this issue. From the perspective of Vorarlberg's Governor Markus Wallner (ÖVP), the Stability Pact is the focus of the meeting, which will be the most important point of the conference, it was said from his office.

Marterbauer as Guest

Probably for this reason, Finance Minister Markus Marterbauer (SPÖ) is also a guest on the first day. At the dinner of the state governors, the head of the department will informally discuss the current situation with the state representatives. It is still unclear whether the budget plan for 2025 can actually be adhered to due to unexpectedly high deficits of the federal states and municipalities, as rumored. Additionally, the date for the next round of the Stability Pact, which should actually be agreed upon this year according to EU requirements, is still missing.

FPÖ leader Herbert Kickl referred to the now expected deficit of 4.9 percent of economic output as a "budget disaster." Kickl sees a breach of trust towards the European Union (EU) and the population, as he said at a press conference on Thursday. He accused Chancellor Christian Stocker (ÖVP) of lacking leadership qualities and suggested the government should resign.

According to Lower Austria's Governor Johanna Mikl-Leitner (ÖVP), measures to combat inflation, the end of the "Austria surcharge," and demands for further investments in broadband expansion to stimulate the construction economy are also on the agenda of the state governors' conference. "Of course, we will not relent on the reform partnership either. Here, it's not about quick headlines, but long-term results. We need to clarify competencies and make the republic more efficient."

Preliminary Talks and Dinner

The state leaders will only arrive in Styria in the afternoon and will hold factional preliminary talks in the evening. This will be followed by a joint dinner at the Kogel 3 inn, located among vineyards. On Friday, the conference will finally begin after breakfast around 9:30 a.m. Late in the morning, the federal government's report on the status of the reform partnership in health, energy, administration, and education is also on the program, although without Chancellor Christian Stocker (ÖVP). However, he will be connected to the conference. Salzburg's Governor Karoline Edtstadler (ÖVP) will be welcomed as the "new" member in the circle of state leaders.

(APA/Red)

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