Inflation: Municipalities get a billion
politics
In view of the financial pressure caused by inflation, the government want to inject EUR 1 billion into the municipalities. 500 million are planned for municipal investments, the other half for increasing energy efficiency and expanding renewable energy sources.
Finance Minister Magnus Brunner (ÖVP) said this on Monday at a press conference called at short notice. He praised the investment program as “a good day for Austria’s municipalities and cities”, but pointed out that the federal government cannot provide an infinite amount of money and cannot reimburse every municipality for the entire loss of revenue. With the fourth community package, the federal government is fulfilling its responsibility.
Municipal and city representatives satisfied
Vice Chancellor Werner Kogler (Greens) pointed out that the municipalities are the largest regional clients and are therefore also important for the regional economy and local jobs. Of course, the investment slump cannot be fully cushioned, says Kogler: “But we are trying to counteract this within the scope of the financial means.” Kogler was also pleased that half of the package was aimed at environmental and climate-related factors.
The President of the Association of Cities, Michael Ludwig (SPÖ) and the President of the Association of Municipalities, Alfred Riedl (ÖVP), are also satisfied and praised the investment programme. However, Ludwig pointed out that even 50 percent co-financing poses a challenge for some communities. Therefore, he would like more flexibility in retrieval. In any case, the package is a “valuable and important measure”.