Opening for Vienna's Financial Statement at City Hall with Premiere for Novak

The Vienna financial statement could lead to intense debates due to the city's challenging financial situation. The budget deficit for 2024 is 1.77 billion euros, less than the originally expected 2.24 billion euros. As a result, the new debt was lower. The total debt of the municipality now amounts to 11.9 billion euros, which corresponds to an increase of 1.77 billion euros.

Vienna Financial Statement: 19.9 Billion Euros Expenditure Last Year

Last year, 19.9 billion euros were paid out. The focus of the expenditures was again on the areas of social services, health, education, childcare, and public transport. In total, around 11.4 billion euros in inflows were recorded here. Specifically, 3.3 billion euros were invested in social services and 3.1 billion euros in health. There were 2.6 billion euros for education and 1.2 billion euros for kindergartens or childcare. Around 1.2 billion euros were spent on public transport. It is considered unlikely that the development will continue: The deficit in 2025 is likely to be higher than planned. According to the latest forecasts, it will not be 2.3 billion, but 3.8 billion euros. In view of the development, a savings package is currently being negotiated at the town hall. However, the red-pink coalition has not yet revealed any details.

Novak's First Speech as Councillor at Vienna Financial Statement

The new Finance Councillor Barbara Novak (SPÖ) also addressed the forecasts in her first speech in the municipal council today. However, she first assured: "I am very pleased to be able to present the draft financial statement 2024 in my new role today." She thanked, among others, the former department head Peter Hanke, who has moved to the federal government, for his previous work. She then recalled the conditions of the past year. "After the corona pandemic and energy crisis, the economic situation has only recovered very, very slowly."

Inflation is still high, and unemployment has also increased, Novak emphasized. However, there are also sectors that are flourishing in Vienna, such as tourism or the biotech sector. The fact that last year the "feat" was achieved of closing better than shown in the preliminary budget is partly due to the "strict budget monitoring," as the councillor explained. They were also consistent in execution. In addition, reserves were dissolved to enable financing. "Of course, this is something that cannot go on permanently," she added.

Therefore, more and more budget discipline will be required in the future. A consolidation path is being pursued, which includes strict budget controlling. Work is already being done on this, Novak revealed: "I know that this is already being diligently done in the individual departments." Cuts in subsidies are already being made. But they also do not want to stifle the investment rate. The budget creation process for 2026 will start soon, she announced.

Vienna Financial Statement: Novak Open to Reforms of Minimum Security

According to Novak, it will be accompanied by stability pact negotiations with the federal government. She criticized that the revenues from joint federal taxes have already decreased in 2024. Here she cited the abolition of cold progression as an example. This year, 500 million euros will be missing from this title, as the councillor complained. They provide the basic services for the people in the city and must not be starved, she demanded.

Furthermore, Novak made it clear that minimum security is the last social safety net. This should be maintained. But that does not mean that there cannot be reforms, she noted. She reiterated the demand, also directed at the federal government, to handle minimum security for employable persons through the AMS. "That is the goal, but we will also do our homework ourselves," she promised, referring to a corresponding passage in the red-pink government program.

Opposition Misses Details on Savings Package in Vienna's Financial Statement

In the subsequent debate, the - also new - ÖVP club chairman Harald Zierfuß immediately criticized that the finance councilor had failed to provide details on budget measures. There was no specific word on the topic of saving, he noted. She had only specifically stated that the federal government should provide more money. "That is far too little given the problems we have." Vienna sets new negative records every year in terms of new debt. The budget and economic situation in Vienna is "anything but great." A clear change in budget policy is necessary, urged Zierfuß.

Green Party leader Judith Pühringer warned, among other things, that the 365-euro annual ticket could be abolished. This is a symbol that Vienna makes affordable mobility possible for everyone. "That was always something like a promise." Vienna is a proud pioneer here, and the affordable public transport ticket should not be a pawn for cuts, demanded Pühringer. She also warned of a decline in subsidized housing, renewing the demand for a vacancy tax. Cuts in social assistance are also rejected. "Living on minimum security is always living on the edge," Pühringer was convinced. Especially for families, there should be no savings.

Vienna's Financial Statement: Warning of New Burdens

Vienna's FPÖ state chairman Dominik Nepp criticized the "irresponsible policy" of the city government. For years, money has been taken away from the Viennese. He referred, among other things, to "burden avalanches" in the energy sector or with fees. Nepp warned that further increases, for example in district heating or the Vienna lines, are now imminent.

He was also astonished that Vienna is now holding the federal government accountable. After all, Mayor Michael Ludwig and Finance Councilor Peter Hanke (both SPÖ) co-negotiated the financial equalization. "Now they are upset that everything is so bad?" It was not possible to negotiate a balance during an economic downturn, he criticized.

According to NEOS club chairwoman Selma Arapovic, the claim that the city government is not planning any reforms is simply not true - as she noted with reference to the government program. A lot is also being invested, for example in the "pink heart topic" of education, but also in public transport, new bike paths, affordable housing, or in phasing out gas.

NEOS Also Calls for Reform of Minimum Security in Vienna's Financial Statement

There will also be savings, as this means taking responsibility, as Arapovic emphasized. "We primarily want to take a very close look at all the subsidies that exist." It will be examined whether they are necessary and how effective they are. They also want to reform minimum security, with the clear goal that work should be worthwhile. After the two-day financial statement marathon, the first regular municipal council of the government period is on the agenda on Wednesday. A session of the state parliament follows on Thursday.

(APA/red)

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