The Congress welcomes reforms in Austria that have clarified the distribution of powers between the Federation, Länder and municipal authorities. It also praises the introduction of Länder Administrative Courts to strengthen Austrian federalism. But challenges remain, including insufficient fiscal autonomy for municipalities and Länder.
Adopted on 28 September 2020 by the Statutory Forum of the Congress, their report on monitoring the application of the European Charter of Local Self-Government in Austria – following a monitoring visit carried out in December 2019 by the co-rapporteurs Marc Cools (Belgium, ILDG) and Andrew Dismore (United Kingdom, SOC/G/PD) – called this lack of fiscal autonomy a “recurring problem”.
"Local and regional authorities have almost no freedom of action with regard to local taxes and are too dependent on intergovernmental transfers," co-rapporteur Marc Cools stressed.
The report calls on the Austrian government to enlarge the Länder’s and municipalities’ tax-raising power, by providing them with greater freedom to set the rates and base of their own-source taxes. According to the report, this will strengthen local fiscal autonomy and accountability and ensure the financial sustainability and long-term resilience of sub-national government.
Among other issues raised in the report, criminal legislation on breach of trust (Untreue) continues to impose disproportionate personal liability on mayors. The Committee urges the Austrian federal authorities to revise this legislation, which would guarantee local elected representatives the free exercise of their mandate in accordance with Article 7 of the Charter.
The Austrian authorities also are invited to sign and ratify the Additional Protocol to the Charter on the right to participate in the affairs of local authorities.
The previous monitoring report on Austria was adopted in 2011.
At the end of the debate, an exchange of views took place with Karoline Edtstadler, Federal Minister for the European Union and the Constitution at the Federal Chancellery of Austria. “The evaluation of local taxation and of the liability of mayors are on the agenda of the Austrian Government,” stated Ms. Edtstadler. “Even in Covid times, the quality of democratic participation is essential to the country: the temporary restrictions imposed during the pandemic have been reviewed constantly at the local level, and we have proudly witnessed local elections take place in two Länder and currently being organised in Vienna,” she concluded.
Austria ratified the European Charter of Local Self-Government in 1987. Countries which have ratified the Charter are bound by its provisions. The Charter requires compliance with a minimum number of rights, which form the European bedrock of local self-government. The Congress of Local and Regional Authorities ensures that these principles are observed.
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