Graz council called to address city’s financial crisis

Graz city council will hold a special meeting on Thursday to address the city’s strained finances, after the opposition requested the session, ORF’s Styria service reported.

The Communist Party and Greens want to respond with a cost-cutting package, while the opposition parties are calling for transparency about the city’s current financial position and next steps.

A budget freeze was imposed in Graz at the start of September, and the processing of new grants was temporarily suspended. The measure was triggered in part by an unexpected additional requirement of nearly 36 million euros for disability assistance.

The city government later agreed on a timetable for dealing with the budget through the end of the year. Orders can now be placed again, but only under strict conditions.

The ÖVP, Freedom Party, Social Democrats and NEOS are seeking concrete answers from Mayor Elke Kahr and Finance Councillor Manfred Eber, both members of the Communist Party, on the city’s current financial situation and long-term consolidation plans.

Daniela Schlüsselberger, the Social Democrats’ finance spokesperson, said savings alone would not be enough to restore the city’s ability to act.

“Consolidation does not simply mean making cuts. Real structural changes are needed so that the city can act again, along with clear priorities: Where will investment take place, where will reforms be made and where must savings actually be made?” she said.

Schlüsselberger also said a wave of retirements would not by itself constitute a recovery plan. “Anyone who wants to leave 25 percent of vacant positions unfilled while maintaining the full range of services must explain how that calculation is supposed to work. A percentage is not yet a staffing strategy, and a wave of retirements is not yet administrative reform,” she said.