Graz in danger: City government warns of millions of debt explosion!

Graz in danger: City government warns of millions of debt explosion!

Kalsdorf bei Graz, Österreich - In Graz, an unexpected application for bankruptcy has seen the light of the public. A company, emerged from the heating, cold, ventilation and sanitary technology, which was founded in 2016, is now faced with enormous financial difficulties. These were triggered by the withdrawal of a major customer and loss of claims, some of which are due to bankruptcies. According to the Orf Styria , the liabilities amount to almost 5.7 million euros and affect 137 creditors and 26 employees. The company strives to remain active through a renovation plan, although there are 3.5 million euros in signed orders for 2025. However, extensive reorganization measures are planned.

City of Graz before financial turnaround

The city will grow to over 2 billion euros by the end of 2026. As expected, the operational budget will remain in the red, with a debt of EUR 1.826 billion at the end of 2025. This presents the city with major challenges, especially in view of increasing expenditure and falling income shares of the federal government, which have been reduced by 9.1 percent.

The legal compulsory services significantly drive up the costs, whereby the expenditure for social services and care facilities in Graz should increase in 2025 from EUR 355.9 million to 403.7 million euros alone. Mayor Elke Kahr and other city managers emphasize that they take responsibility in budget planning. However, critics among the NEOS warn that the city continues to get into the debt swamp under the communist leadership instead of taking the necessary course corrections.

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OrtKalsdorf bei Graz, Österreich
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