After decades of corporatist urban governance dominated by social democracy
,Vienna is undergoing a process of economic and political restructuring. Th
is process is expressed physically in large urban development projects, Don
au City being the most important. Donau City is a large real estate project
on the left bank of the Danube, based on public-private partnership. Due t
o the liberalization of the housing market, new private actors are increasi
ngly important, influencing decision-making in the Donau City project. In u
rban planning in general, growing interest in real estate investment has re
sulted in new planning procedures incorrectly labelled as bottom-up. In fac
t, this is a fragmented, privatized, opaque and ad hoc form of urban govern
ance accompanied by a new elitist hierarchy formed by leaders of the city's
administration, business and academic worlds. This new, unaccountable elit
e has elaborated a strategic plan for Vienna with little reference to the c
itizenry. Therefore, the new liberal form of governance goes hand in hand w
ith important continuities concerning co-optation, exclusion and conflict a
voidance. The article ends by stressing the importance of alternative polit
ical projects that aim at participatory democracy overcoming deep-rooted au
thoritarian structures.