The KDZ Newsletter informs you about current KDZ projects, topics and activities of interest to the public sector. The KDZ Newsletter is published ten times a year.

The CSPF network unites major European cities to exchange strategic approaches for sustainable municipal finances and strong local institutions. At the 11th meeting, participants highlighted the importance of administrative capacity, responsible use of AI, sustainable budgeting and robust integrity systems to strengthen democratic resilience.

For us, “Forward” is more than just a motto for 2025. It represents an attitude of not merely managing crises, but using them as an opportunity to rethink established approaches and pursue new paths. This attitude has shaped KDZ’s work over the past year, in our collaborations with municipalities and cities, public administrations, and public sector organisations at federal, Länder, and EU levels, as well as in our contributions to the public debate on administrative and structural reforms.

Public employment refers to all individuals working in government institutions and publicly funded organizations, including central and local governments, education, healthcare, public safety, and social services. These employees play a crucial role in delivering essential services, implementing public policies, and ensuring the functioning and stability of democratic systems.

Cities are crucial in tackling global challenges like climate change and sustainable development. Four leading cities—Amsterdam, Barcelona, Bordeaux, and Hamburg—have joined forces in the SLPF project to integrate the UN's Sustainable Development Goals (SDGs) into their public financial systems. This collaboration aims to drive a sustainable future through innovative financial management.

Climate change and ambitious climate targets require major investments in local infrastructure—while municipalities face tight financial and human resources. This guest article by Christian Raffer (German Institute of Urban Affairs (Difu)) explores how sustainable finance instruments such as green bonds and green promissory note loans can support municipal funding, and where their limits lie. It shows that sustainable finance can be a strategic building block, but not a silver bullet.

The Municipal Exchange Fund Austria–Ukraine (A4U) has officially launched its Call for Proposals, inviting Austrian and Ukrainian municipalities to submit joint project proposals and establish municipal partnerships.

Recently, the CAF Practitioners Network, where CAF users from around the world meet to exchange ideas, presented the findings of the CAF Impact Study 2025.

KDZ – Centre for Public Administration Research is pleased to announce the launch of the Municipal Exchange Fund “Austria for Ukraine” (A4U), funded by the Austrian Development Agency (ADA) as part of International Partnerships Austria and the Austrian Association of Cities and Towns (AACT), and in cooperation with U-LEAD with Europe.

Austria’s municipalities under pressure: Rising costs, shrinking revenues, and increasing levies threaten local services and investments. Urgent reforms are needed to secure financial stability.

How can artificial intelligence support public financial auditing? Which control tasks can be automated – and where are the limits? This case study from Barcelona explores the first use of AI in contract auditing, outlining the technical and legal requirements as well as the potential gains for efficiency, transparency and overall management quality.

Levies are an important source of income for municipalities, as they provide financial leeway and strengthen local autonomy. A European comparison shows that while municipalities in Scandinavia have extensive tax powers, these are severely restricted in other countries.

The new episode of KDZ in Dialogue, hosted by Siegfried Fritz, focuses on the link between local public finance and the United Nations’ Sustainable Development Goals (SDGs).