Vienna, 28.03.2017 Schelling and Mitterlehner launch investment programme for Austrian municipalities

Vienna (OTS) - In addition to fiscal equalization, a total of EUR 175 million available for 2017 and 2018 by way of leverage financing – Expansion of municipal infrastructure to be subsidized 

At the initiative of Austrian Finance Minister Hans Jörg Schelling and Economics Minister Reinhold Mitterlehner, on Tuesday the Austrian Council of Ministers adopted a comprehensive investment programme for the Austrian municipalities. "The municipalities constitute the strong backbone of our nation. They ensure that we have sufficient infrastructure and secure Austria's high quality of life. This makes providing targeted support for their investments all the more important," stressed Mitterlehner and Schelling. "We anticipate a leverage effect of about EUR 780 million. 8,500 jobs will be created. The regional economy in particular will profit." 

"In addition to fiscal equalization, we are providing a total of EUR 175 million for 2017 and 2018," declared both Ministers. Key investments in the modernization of municipal infrastructure will be subsidized, with the exception of vehicles and staff costs. Examples of areas for potential subsidy include the setting up, expansion and renovation of schools and childcare facilities, the creation of public housing, thermal rehabilitation and construction of buildings in municipal ownership, and also measures in connection with comprehensive expansion of broadband data networks. 

Implementation will take place via an earmarked subsidy totalling a maximum of 25% for each project. Applications may be made with effect from 1 July. Payments will be issued via the Federal Accounting Agency at the Austrian Ministry of Finance.

A fair allocation ratio across the individual municipalities has been drawn up. The available subsidy for each municipality will be communicated in the next few days to the local mayors. "Swift and unbureaucratic processing is assured, so that the subsidies may be swiftly approved," concluded Mitterlehner and Schelling.