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".

Rate Freeze on SME Credit Ending April 1 Banking

Rate Freeze on SME Credit Ending April 1

Budapest Residents to Weigh in on Rákosrendező Development P... Issues

Budapest Residents to Weigh in on Rákosrendező Development P...

AutoWallis Becomes Importer of Geely Group’s Commercial EV B... Automotive

AutoWallis Becomes Importer of Geely Group’s Commercial EV B...

These Are the Most Sleep-friendly Hotels in Hungary Hotels

These Are the Most Sleep-friendly Hotels in Hungary

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.