Graz opposition forces special council meeting over city finances

Graz’s opposition parties are jointly forcing a special city council meeting to demand full transparency about the Austrian city’s financial crisis, ORF reported Wednesday. The ÖVP, FPÖ, SPÖ and NEOS are seeking answers from Mayor Elke Kahr and Finance Councillor Manfred Eber, both of the KPÖ.

The request will be submitted on Thursday, and the special meeting must take place within one week.

Graz imposed a budget freeze at the beginning of September on Eber’s request, together with Finance Director Johannes Müller. Processing of new subsidies was temporarily suspended. On Monday, Eber presented more precise figures and reasons, saying the amount not previously included in the city’s liquidity planning had risen to 35.9 million euros.

In a joint statement, the opposition parties said the city’s financial situation required full transparency and that the debate must take place in public. They called for no diversion of attention, shifting of responsibility or closed-door meetings.

ÖVP Councillor Kurt Hohensinner accused the KPÖ and the Greens of losing control of the city’s finances. He said five budgets had failed in recent years and that the city had accumulated about 500 million euros in new debt over five years. He also said municipal areas that had previously been financially stable, including Wohnen Graz, were now recording losses.

Hohensinner rejected the suggestion that disability assistance was responsible for the crisis as an “inexpensive distraction” and called on Kahr and Eber to provide answers and concrete solutions.

The FPÖ is also planning a separate motion asking the city’s Kontrollamt, its financial oversight office, to examine the city’s finances. Councillor Rene Apfelknab said the review should establish how the crisis developed, who knew about it and when, and how the budget freeze became necessary.

SPÖ Councillor Daniela Schlüsselberger said the special meeting was needed to restore confidence among residents, businesses and financial markets in the city’s ability to act.

NEOS Councillor Verena Garber called for all facts to be disclosed and asked why action had not been taken earlier despite years of warnings. She also demanded monthly budget and liquidity monitoring, binding early-warning mechanisms and a specific consolidation plan.