Member states in default

UN short of cash: austerity measures enacted

The UN headquarters in New York City(Bild: JHVEPhoto - stock.adobe.com)

The United Nations often struggles with financial problems and has to borrow money from time to time to make up for late contribution payments. Last year, however, the lowest payments in five years were received. UN Secretary-General António Guterres was therefore forced to enact a series of austerity measures.

Among other things, it was decided at the beginning of February to turn down the heating in the famous UN headquarters on New York's East River. According to reports, the heating must now be reduced from around 22 to around 21 degrees Celsius.

Secretary-General's spokesperson now wears a scarf
It is probably a rather symbolic difference, but in the draughty high-rise building with thousands of employees, there are already changes in the choice of clothing. Because it is chilly in some conference rooms, many employees are now wearing thick sweaters to work. "We are trying to ensure that we have enough liquidity to ensure basic supplies," said Guterres spokesperson Stéphane Dujarric on Wednesday.

The scarf he recently wore at a press conference was not a prop. He was wearing it "because I'm cold", said Dujarric. Other UN employees also complain about chilly rooms and cold fingers, but otherwise go about their work as usual. 

USA at the forefront of defaulting states
The reason for the austerity measures is that UN member states are in arrears. The lack of cash has made "aggressive measures" necessary, according to the United Nations. Otherwise the money could run out by August.

The most serious problem is the lack of contribution from the United States: Washington owes the United Nations around one billion US dollars for the years 2023 and 2024, partly due to budget problems in Congress. The entire UN budget, excluding money for peacekeeping missions, is more than three billion dollars.