Many Questions Remain

Save 65 million—but how is that supposed to work?

SP Finance Councilor Thomas Gegenhuber faces difficult weeks ahead: From the numerous cost-cutting proposals, he must now craft a budget that gets Linz’s finances back on track and then secures the necessary majorities in the City Council.(Bild: Markus Wenzel)

Expectations were high, and the day was long—but at the end of the budget meeting in Linz, no final austerity package had been agreed upon. Yet time is running out, as the city must get its finances firmly back on track in the coming years. Experts have now put a clear figure on the scale of the cuts. Here’s what happens next—and why the parties are blaming each other following the meeting.

Today, Thursday, hours were spent at the Old City Hall calculating, discussing, and searching for ways to cut costs. Although no concrete austerity package emerged at the end of the budget retreat, a clear figure did: According to experts at BDO, the city must save around 65 million euros over the next three years to balance its operating budget again.

Agenda Changed
SP City Councilor for Finance Thomas Gegenhuber now faces difficult weeks ahead. Potential majorities for individual measures were actually supposed to have been explored by now. Because the ÖVP refused to conduct the agreed-upon preliminary assessment of the cost-cutting proposals, the plan was changed. “The consolidation of the city’s finances should not be hindered by the upcoming election campaign,” Gegenhuber criticizes. Now, majorities will be sought during budget discussions with individual city senate members.

“No Adequate Strategy”
Hardly anyone went home satisfied. VP City Vice Mayor Martin Hajart counters the accusation of a boycott. His party had submitted 32 cost-cutting proposals. However, the mayor and finance commissioner had failed to present a sufficient strategy.

“A lot of effort with no results”
Green City Councilwoman Eva Schobesberger spoke of “a lot of effort” with no results and criticized not only the ÖVP but also the SPÖ for lacking clear priorities. Schobesberger herself intends to focus, among other things, on payments for highway projects, public safety services, and changes to financial flows between the city and Linz AG. She rejects, however, cuts to childcare, community organizations, and municipal cultural institutions. 

“Well Below Expectations”
For Michael Raml (FPÖ) as well, it was a closed-door meeting that fell “well short of expectations.” He felt concrete decisions were lacking. He is calling for clear priorities in security, infrastructure, long-term care, schools, and childcare, and in return wants to cut what he considers to be unnecessary spending. Raml sees particular potential for savings in the culture budget. 

Vote on December 17
For Gegenhuber, the real work is only just beginning. Budget discussions with the individual department heads are scheduled for October 13–23, and the figures will be consolidated in November. On December 17, the City Council is finally set to vote on the 2027 budget. By then, the more than 180 proposals must be narrowed down to those measures that can actually secure majorities in the politically fragmented Old City Hall.