Austria on the abyss: Budget emergency requires drastic reforms!

Austria on the abyss: Budget emergency requires drastic reforms!

Austria sees itself in the middle of a financial chaos caused by the predecessor governments turquoise-blue and turquoise green. In a current article by oe24 it is urgently required that the government has to tackle the financial as a financial To expand scope. Finance Minister Markus Marterbauer warns "two hard years" and even sees an impending "lost decade" to Austria. The consequences of pandemic have put a lot of burdens about the state coffers, and it is obvious that a fundamental change is required without drastic measures.

The previous expenditure of recent years, especially during pandemic, have led to a critical situation. Marterbauer criticizes that the last finance minister, Magnus Brunner, has not taken any effective austerity measures. Requirements for lifting the retirement age to 65 years and cuts in grants and the abolition of certain discounts such as service cars and diesel goodies are increasing in intensity. The discussion about the so -called country footism, which is held responsible for the unequal distribution of funds, is particularly controversial.

criticism of the opposition and the SPÖ

The opposition, led by the SPÖ, expresses sharp criticism of the government's savings plans. In a press release from ots.at is emphasized Population are worn, while large industrialists and banks do not meet their responsibility. Andreas Babler, the SPÖ representative, speaks of considerable injustice.

The FPÖ, on the other hand, underlines that the disastrous budget situation was caused directly by the last government. Finance Minister Gunter Mayr tries to meet these challenges with a package of measures that provides for savings of 6.39 billion euros, whereby 50% of these savings should come from grants. In addition, the abolition of the climate monus is criticized as a tax increase by the back door.

Need for reforms

The tense budget situation also requires extensive reforms in the public sector, as in a blog post by kdz.eu . The forecasts clearly show that the EU fiscal rules to return the public debt could be missed far. The demographic development, coupled with high expenses for support measures, additionally tightens the situation. In addition, the high investment requirement in climate protection, digital transformation and improved general interest is pointed out.

The challenges are diverse and require a real further development of multi-level government in Austria. The aim is to increase the efficiency of fiscal federalism and reduce the complexity of the distribution of funds. The increasing state expenditure and the inflation -related pressure are warning signs that cannot be ignored. In order to secure the financial basis of democracy and prevent right -wing populist or extreme movement, sustainable reforms are essential.