Government draws positive balance - but the opposition sounds the alarm!
Government draws positive balance - but the opposition sounds the alarm!
On July 8, 2025, the traffic light government, consisting of the ÖVP, SPÖ and Neos, drew a positive balance after the first four months of its term. Chancellor Christian Stocker (ÖVP) and Vice Chancellor Andreas Babler (SPÖ) emphasized the successful cooperation in the coalition. A central topic was the decided double budget for 2025 and 2026 as well as the reform partnership with countries and municipalities. Stocker also referred to the need for EU deficit proceedings to secure the government's financial framework, while Foreign Minister Beate Meinl-Reisinger (NEOS) praised the sustainability mechanism in pensions and highlighted new training positions in elementary education.
"We presented a strong balance sheet," said Babler, who also addressed the "strictest weapons right reform" and the expansion of prevention programs after a recent killing spree. Other topics that BALLER brought up include a higher bank tax, interventions in rental prices and the introduction of partial sizes.
criticism from the opposition
Despite the optimistic summary of the government, there was also sharp criticism from the opposition. Leonore Gewessler from the Greens described the government work as "forgotten", while the FPÖ characterized the balance sheet as the "document of failure". Hubert Fuchs, financial spokesman for the FPÖ, criticized the double budget in particular and described it as no renovation budget. "Between 2020 and 2024, the black-green predecessor caused a deficit of around 88 billion euros," said Fuchs, warning that the new government expects further deficits of 82 billion euros by 2029. These alarming numbers throw a shadow on the future of Austrian economic and financial policy.
One of the specific criticisms of Fuchs' is the continuation of a failed budget policy and the lack of approval of the ÖVP for the necessary transparency in budget renovation. Fuchs pointed out that the partial reintroduction of the cold progression will put a great burden on employees and pensioners, which should bring in more than 3.3 billion euros by 2029.
economic challenges
With regard to the current economic challenges, Fuchs emphasized that Austria has an expenditure problem and no revenue problem. The government refuses the valorization of social and family benefits for two years, which in reality leads to cuts. Increasing health insurance contributions for retirees from 5.1 to 6 percent is another example of the negative effects of current politics. "We are in the third year of recession, which is historically unique," said Fuchs. This development goes hand in hand with a decline in real GDP per capita by 1.7 percent from 2020 to 2024.
In addition, Fuchs expressed his concern for the planned support of an EU deficit procedure by the government. According to the Maastricht criteria, which contain binding requirements for the Member States of the European Union, the public deficit must not exceed 3 % of gross domestic product. Exceeding this border would not only stabilize the economy, but also potentially endanger Austria's membership in the monetary union.
The political tensions between the government and the opposition illustrate the challenges in front of which Austria is facing. The coming months will be decisive for whether the government can keep its course or whether a rethink is necessary to secure the country's financial stability.
For further figures and information on budget deficits and financial framework in Austria, we refer to the data of DetailsOrt Dolomitenstadt, Österreich Quellen
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