Burgenland's Financial Crisis: Reserves Plummet, Debts Soar
Burgenland's financial reserves have plummeted from €225 million in 2020 to €100 million in 2024, leaving the province depleted. The Burgenland State Audit Office has urged a coordinated financing strategy and transparent accounting of all financial liabilities.
The province has been transferring its financial debts to state-owned enterprises, leading to a sharp rise in debt levels in recent years. Burgenland now ranks last among Austria's federal states in contingent liabilities, with €1.56 billion, equivalent to 98% of its budgeted revenue.
Nearly 40% of Burgenland's total liabilities is long-term finance, with a significant portion maturing in 2036. The province's cash reserves have also dropped significantly, from €452 million to €168 million, with speculative interest rate swap deals resulting in €120 million in losses.
The new Oberwart Hospital, opened in June 2024 at a cost of €180 million, was fully paid off through the state budget. However, the province's financial liabilities have increased by €383 million over the past three years, reaching €2.18 billion. The holding's debt has also risen by at least another €189.89 million due to repaying the state with loans.
Burgenland's financial situation is critical, with dwindling reserves and rising debts. The province must address its financial liabilities transparently and implement a coordinated financing strategy to prevent further deterioration.
