Budapest mayor to merge muni companies to save costs

City

Usacheva Ekaterina / Shutterstock.com

Budapest mayor Gergely Karácsony said five city-owned companies would be merged to cut costs, according to a report by state news wire MTI.

Image by Usacheva Ekaterina / Shutterstock.com

In a post on his Facebook page, Karácsony said municipal council-owned companies for groundskeeping, for cemetery management, for chimney sweeping, for garbage pickup and for district heating would be merged into a holding company, based on the "well-functioning" Stadtwerke model in place in Vienna and in big cities in Germany.

The restructuring will affect management but not professional staff, he said.

Imre Mártha will head the new holding company, he added.

Karácsony acknowledged Katalin Walter for drawing up the restructuring plan and said she would be appointed head of the Budapest Public Transport Centre (BKK) from January 1.

The restructuring was among a number of other cost-cutting measures, the mayor outlined.

Karácsony complained that the central government is "not a partner in the crisis" but is "hindering Budapestʼs recovery".

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