Klagenfurt in need: City threatens insolvency by 2026!

Klagenfurt in need: City threatens insolvency by 2026!

in Klagenfurt, the picturesque capital of Carinthia, is bubbling at every nook and corner. The city faces a serious financial crisis that could have worse consequences than an empty wallet. According to a report by the consolidation advisory board, the insolvency could threaten within a year, which would significantly restrict the city's freedom of action. In this tense situation, those responsible have worked out a comprehensive catalog of measures to counteract the impending bankruptcy, such as [Merkur] (https://www.merkur.de/welt/urlaubsort-in-oesterreich-kaempf- Insolvenz-diese-dohen-nun-nun-nun-nun-nun).

The report suggests putting the planned new building on ice. The project, which continues without thorough considerations, could drastically jeopardize the city's liquidity by 2026. Instead, the advisors recommend a recalculation of a loan of 44 million euros to make internal loans and to make urgently needed investments. This could secure the liquidity by 2029 if the construction of the indoor pool is stopped. The indoor pool, which the city has been missing for several years, is becoming increasingly in the background, as well as puls24.

drastic austerity measures are on

In order to get the city's financial problems under control, drastic measures must be taken. The consolidation advisory board proposes to reduce the staff by 300 positions by 2032, which would result in a saving of around 20 million euros. In addition, salaries and a zero wage round for the magistrate employees are discussed, while an increase in parking fees in the city has already been implemented. These measures are intended to generate the urgently needed income to get the city back on their feet.

Another point of the plan provides for the city's own real estate to be sold, which is supposed to flow more than 30 million euros into the city treasury. Stadtwerke Klagenfurt should also increase their share of liquidity in the future: Over the years, annual profit distributions of up to 15 million euros are to be paid over the years. The State Audit Office Director calls for a political agreement and structural reforms to ensure sustainable financial stability, such as Kleine Zeitung noted.

consultations and possible solutions

Urban politics plans to discuss talks to further discuss these proposals and take the necessary steps. The consultations should take place on June 23, while the budget decision for the current year should take place until mid -July. A reorganization of the fire service is also brought into play as part of these talks. Here, a better cooperation between the professional and volunteer fire brigade is sought and even thought about possible closures of urban institutions such as the city gallery.

The situation in Klagenfurt is tense, and it remains to be seen which measures are actually implemented and whether the politically managers prove a "good hand" to lead the city out of the financial misery. In summary, one can say that Klagenfurt is faced with a major challenge that the city has to actively face in order to be back on solid legs in the future.