TIROLER TAGESZEITUNG, leading article: "Stable and yet very shaky" by Peter Nindler

2023-07-22 20:00:38

Issue of Sunday, July 23, 2023

Innsbruck (OTS) – A relatively stable debt level of 1.161 billion euros in the municipalities is still more than just a financial alarm signal.

A strong association of municipalities is needed in Tyrol right now. But after the bankruptcy of his service company GemNova, he lies on the ground without orientation. The financial situation of the Tyrolean municipalities is more than tense. Although the debt of 1.161 billion euros remained almost the same as in 2022, the income was significantly higher by 165 million euros in the previous year. In addition, there are liabilities of over 710 million euros. The market town of Matrei in Osttirol is a cautionary tale. Because the obligations for outsourced debt there are no less than 12.7 million euros.

It is precisely these liabilities that turn a reasonably passable financial situation into an imbalance. Like Matrei, Seefeld can sing a song about it. Interest rates are now also rising, making loan repayments more expensive. At the same time, it is not yet possible to estimate how the near-bankruptcy of Matrei and the insolvency of GemNova, which is perceived as a public company, will affect the communities’ trust in the banks. They were the ones who demanded at least 90 percent approval for the renovation when the rescue of GemNova ultimately failed.

In any case, the municipalities are coming under more financial pressure, energy and construction costs and, in general, inflation are causing them problems this year. We’re not even talking about childcare, rising social spending or hospital financing. So you don’t have to paint it black: With these framework conditions, a relatively stable level of debt in the 277 Tyrolean municipalities is already more than just an alarm signal.