Waidhofen’s drastic austerity plan aims to stave off bankruptcy by 2027

A city on the edge: Waidhofen’s harsh cuts and fee hikes spark outrage. Can mortgaging a historic castle save its future?

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2025 November 24 . 9:27 PM

1 min read

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Waidhofen’s drastic austerity plan aims to stave off bankruptcy by 2027

Waidhofen an der Ybbs is on the brink of financial collapse. The city has now unveiled a harsh austerity budget to avoid bankruptcy, slashing costs and hiking fees for residents. Officials warn that without drastic action, the situation could worsen by 2027. The city’s 2026 budget reveals a €720,000 shortfall, with an additional €2 million deficit expected this year. To cover expenses, the local government—led by a coalition of ÖVP, SPÖ, FPÖ, and the list Kanber Demir—has mortgaged Rothschild Castle to secure a bank loan. Despite the financial strain, €12 million will still be allocated to childcare and schools over the next three years. The austerity plan aims to stabilize Waidhofen’s finances, but residents will pay more for essential services. Asset sales and higher fees are now unavoidable as the city tries to balance its books. Officials insist these steps are necessary to prevent a full financial breakdown.