Graz implements austerity measures to address city budget deficit

The city government of Graz, a coalition of the KPÖ and the Greens, has introduced a second major austerity package to address severe financial instability. The measures aim to bridge a significant budget gap, with a long-term goal of saving 65 million euros by 2028.

Key changes include the termination of the free ‘Altstadtbim’ tram service in the city center starting January 1, 2027, and the introduction of separate tariffs for the Schlossbergbahn. Additionally, the city will end sponsorship for professional sports teams, including SK Sturm Graz, GAK 1902, and the Graz 99ers, through Holding Graz. In protest, the Graz 99ers temporarily removed ‘Graz’ from their name and logo, while SK Sturm Graz displayed patched-over logos during a match.

The Austrian Court of Audit has criticized Graz's financial situation, noting that the city's debt per inhabitant is significantly higher than in other Austrian state capitals. The audit highlighted that since 2021, the city has struggled to cover operational expenses through current revenues. Critics, including the Chamber of Commerce and local tourism officials, have warned that these cuts could harm the city's accessibility and economic vitality.