Housing ever more expensive

“There simply must be no room for this in Tyrol”

President of the Tyrolean Association of Municipalities Karl-Josef Schubert(Bild: Christof Birbaumer)

Tyrolean mayors meet in Ehrwald on Wednesday for the Municipalities Day. Municipal Association President Karl-Josef Schubert comments on the most important topics in an interview with "Krone". And he clearly opposes speculation with living space: "Why should young people be prepared to work more if owning their own home is unaffordable?"

"Krone": What is the financial situation of the municipalities?
Schubert: The situation is tense. The reason is the recession, which is resulting in lower tax revenues and income shares. Compared to 2023, we are nevertheless assuming an increase in the order of three to 3.5 percent, but this can only be achieved through a liquidity injection of 300 million euros from the federal government for Austria's municipalities. Tyrol accounts for 19 million euros of this. There are also grants from the municipal investment program (KIP) and the state's future fund. However, the gap will continue to widen. This is because the increase in expenditure is between 5 and 8 percent, caused by a 5 percent increase in wages and salaries, increased social expenditure such as minimum security, where 6 to 8 percent is expected, and 3 percent inflation. In addition, there are new tasks such as the swimming pool package. Despite investment incentives and subsidies, the scope for the municipalities is therefore becoming narrower. The level of debt already amounts to 1.2 billion euros. The average level of debt is rising, the freely available funds are falling. The municipalities will not be able to make any great leaps.