Austria's savings package: Massive cuts threaten turbulent times!

Austria is faced with a financial test: In order to avoid an impending EU deficit procedure, the government is planning drastic austerity measures such as kosmo.at . The government, consisting of ÖVP, SPÖ and NEOS, referred to the government and the educational leave, which referred to the "Zuckerl coalition" to save a total of between 15 and 24 billion euros in the coming years. This is part of a comprehensive savings package, which according to Prime Minister Christian Stocker and the party leaders are considered a need to get the country finances under control.

A central element is the abolition of the climate monus, which is intended to enable savings of around two billion euros. From 2026, however, a partial compensation for commuters is offered by a deduction. The worst cuts also concern support for education and social projects. The budget is also repaired by the increased bank tax and the extended over -profit tax for energy companies, whereby these measures should generate revenue of up to 700 million euros per year, according to Profile .

Fast measures for the cash registers

The government not only aims at savings, but also plans to increase tax revenue through adjustments. At first glance, this requires that appear necessary to increase tobacco tax and the abolition of VAT exemption for photovoltaic systems. By 2026, the fees for public services, such as travel passes and driver's licenses, are also to increase by up to 44 percent. Allena The introduction of new taxes for foundations and a stability tax for banks show that the government is trying to create a fairer load distribution, even if the exact effects on the citizens are still to be seen.

The negotiations are exciting and show the effort of the coalition to find a uniform and broad solution despite the hard cuts. While the coalition parties agree that a reform is necessary, it remains to be seen how citizens will react to the upcoming financial changes.