Promissory notes

“Financial bombs” lying dormant in 60 Styrian municipalities

Ernst Fischbacher no longer running for office(Bild: Sepp Pail)

Promissory bills are burdening dozens of Styrian municipalities because the state is now demanding money back. The head of Ramsau has already announced his resignation as a result. Are others also throwing in the towel?

The promissory bills case has now forced a mayor to resign for the first time: As reported, the popular Ramsau Citizens' List local leader Ernst Fischbacher has announced that he will no longer be standing in the local council elections in March. The decisive factor for the surprising decision was the unresolved question of whether and how the municipality should repay a 2.3 million euro loan. On the occasion of the Nordic World Ski Championships in 1999, the Upper Styrians had borrowed this sum from the state - apparently on the assumption that they would no longer have to repay it. In any case, there is no municipal council resolution to this effect.

"It's a matter of an upright loan"
Wolfgang Wlattnig, head of the municipal department, regrets the withdrawal of the head of the municipality and sees no reason for it - but confirms that Ramsau has to pay off the millions in debt: "The municipal representatives signed at the time, so it is an outstanding loan." It will become due plus one percent interest per year by 2053 at the latest.

The aim is for the municipality of Ramsau to include the promissory bill in its accounts - just like the other municipalities.

Wolfgang Wlattnig

In fact, up to 60 Styrian municipalities are said to be sitting on a mountain of debt: Like Ramsau, they had borrowed around 65 million euros from state funds (official title: "Ortserneuerungsdarlehen") between 2002 and 2003. "This was used to implement numerous important projects," emphasizes Wolfgang Wlattnig. The promissory bills issued would "not affect the budget", the then ÖVP provincial councillor Gerhard Hirschmann is said to have assured the grateful mayors. In other words, the money could be seen as a gift.

The only problem is that it was only a verbal promise, there are no written records of it. Gerhard Hirschmann can no longer be questioned about this, as he died in 2019. The Greens are now taking issue with this: it is "grossly dishonest and dubious to now shift responsibility to the municipal level", rages control spokesperson Lambert Schönleitner. The government must seek dialog.