Financial equalization: States also hold the federal government accountable when setting targets

2023-10-12 12:29:11

LHStv.in Schaunig, LH Wallner and LR Schleritzko following the conference in Carinthia: Federal additional funds must be transferred to a new distribution key for the next period – criticism of the KIM regulation

Klagenfurt (OTS/LPD) The financial officers of the federal states met today, Thursday, in Klagenfurt under the chairmanship of Carinthia’s LHStv.in Gaby Schaunig. The main topic was financial equalization. There was recently a fundamental agreement with the federal government that provides 2.4 billion euros in “fresh” money per year for states and municipalities, including a future fund with 1.1 billion euros. Details, such as the formulation of targets, still need to be worked out. Schaunig explained this in a joint press conference with the Vorarlberg Governor Markus Wallner and the Lower Austrian Finance Minister Ludwig Schleritzko. Another topic at the conference was the so-called KIM regulation of the Financial Market Authority (FMA), which makes it more difficult – especially for young families – to take out loans to create living space.

Schaunig explained that the additional funds of 2.4 billion euros must be transferred to a new distribution key in the next financial equalization period. “There is no way around it,” she emphasized. The finance officers unanimously made a corresponding decision at today’s conference. Now the next step is to formulate the targets. “We need the federal government’s commitment that we can achieve these ambitious goals,” said Schaunig. In this sense, the Carinthian finance officer called for clear steps from the federal government: “The federal government must ensure training positions in elementary education, otherwise we cannot achieve goals in this area. We also need more training and study places for young people in the health sector. Furthermore, there must be no withdrawal of federal funds in the areas of energy efficiency, heating replacement, etc..” Schaunig also made it clear that practice positions in the private practice sector must be filled – “otherwise there will be no relief for hospital outpatient clinics”. The finance officer emphasized that the countries have invested a lot and are continuing to invest a lot. If the specified federal state tasks have been fulfilled, it must be ensured that the funds linked to goals can also be used for other areas.

Governor Wallner said that they wanted to “reach the goal with the federal government in the next few weeks” when it came to financial equalization. The additional funds of 2.4 billion euros annually over the next five years are indexed and valorized. Wallner referred to the WIFO study, which attested that the states had higher spending dynamics than the federal government. These expenses would primarily affect the areas of child care, nursing care and health. Wallner made it clear that the states and municipalities are pulling together with their demands on the federal government. He also said that the next financial equalization must come with a change in the distribution key: “We can’t do anything with start-up financing alone,” he emphasized, referring to high ongoing costs in the areas mentioned.

State Councilor Schleritzko said regarding the financial equalization that a solid foundation had already been built and construction of the house had already begun. “But the house is not ready for occupancy yet,” he said, referring to the legal basis that still needs to be worked out. Schleritzko also called for targets that can be achieved with the available resources. Funds from the future fund should be able to be used flexibly once the goals have been achieved. The Provincial Council also discussed the Austrian Stability Pact. Because of the high inflation and the current economic situation, we have to “face reality”. There is enormous pressure on state budgets, also because the federal government has “shrinked the cake” through its measures once morest cold progression. The criteria of the Stability Pact must be adjusted accordingly; its reform is urgently needed.

Regarding the KIM regulation, Governor Wallner said that especially in the West, but also increasingly in other federal states, young families can no longer afford to buy their own home. The regulation must therefore be urgently intervened, if in doubt also under European law. “We are saying that it should largely be undermined,” says Wallner. Schaunig added that the KIM regulation not only affects potential borrowers, but also the construction sector and the construction-related industry. If access to financial resources for new construction and renovation continues to be restricted, this will also affect investments and employment. “This will also delay the energy transition,” emphasized the finance officer. State Councilor Schleritzko also has “full support” for the state demands regarding the KIM regulation.

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