Klagenfurt am Wörthersee: Risk of insolvency - city has to save drastically!

Klagenfurt am Wörthersee: Risk of insolvency - city has to save drastically!

In Klagenfurt am Wörthersee, the alarm bells stand up: the capital of Carinthia is faced with an acute financial emergency that could lead to insolvency. According to a report by the Austrian Consolidation Advisory Board, this critical state threatens at the latest in the first quarter of 2026, no countermeasures should be taken. The city needs around 60 million euros annually to solve its finances. Against this background, the construction of a new indoor pool that has been discussed for years is sharply criticized. Experts of the consolidation advisory board recommend that this plan not further increase the financial burdens, such as fre.de

Last autumn, 52 million euros were already missing for the current operation of the city, and there are serious considerations to drastically reduce the staff. By 2032, Klagenfurt could reduce around 300 jobs, which would save around 20 million euros annually. The number of free days could also be subjected to reviews to implement further savings. Mayor Christian Scheider illustrates the need for a comprehensive structural reform to increase efficiency in administration.

comprehensive austerity measures required

In order to avert the impending insolvency, various austerity measures came up. In addition to staff loss, the proposals also provide for the sale of urban real estate that could bring in over 30 million euros. An increase in profit distribution from the municipal utilities should also strengthen the financial cushion - in 2025 and 2026, a distribution of 15 million euros will be sought, followed by 10 million euros annually to 2029. In addition, the closure of the city gallery is being considered.

The Klagenfurt Greens criticized the planning of the indoor pool as a "chaotic prestige project" and instead proposed cost -saving alternatives, such as solutions to the exhibition center. In this context, it is crucial that city politicians act quickly because time is pushing. The decisions related to the budget for the current year should be made in mid -July.

regional challenges

But Klagenfurt is not alone with his worries. In Carinthia, around two thirds of the municipalities are affected by financial bottlenecks, which puts the entire region under pressure. A study shows that up to 40 % of the municipalities could no longer be able to finance their ongoing operation themselves in the near future. Many municipalities have to think about the cuts of voluntary services and optimize sources of income to secure their liquidity, such as Kosmo. Innovative measures to stabilize finances are necessary and the development at the state and federal level will play a central role in this.

The new financial landscape forces cities and municipalities to think about cooperation and not just about its own borders. Especially in times when the scope is severely restricted for additional funds, a figurative rethink becomes a survival strategy. In order to maintain municipal services, clear incisions and solid decisions are essential in order not to get into a financial downward spiral, as [KDZ] (https://www.kdz.eu/de/aktuelles/blog/welche-consequences-füdzen-werk-schwierigen- Finanzelle).