Austria faces billions of bills: what's next?

Austria faces billions of bills: what's next?

Österreich - The Austrian federal government faces an enormous budgetary challenge. On Monday, December 16, the fiscal council presented the alarming household figures that require massive savings between 14.8 and 24.1 billion euros. These figures were discussed by “today”, and it becomes clear that the measures for household consolidation will have far -reaching effects, especially since they are based on the current coalition negotiations between the ÖVP, SPÖ and NEOS. The pressure to act increases because the EU Commission wants to see specific measures to reduce the deficit by January 21st.

saving strategies in focus

With these guidelines, politics must decide how it is best to stuff the budget hole. Finance Minister Gunter Mayr has already brought possible savings, such as the deletion of the climate monus and educational leave. The four-year plan without EU deficit procedure would have a total consolidation requirement of 24.1 billion euros, which means that around six billion euros would have to be saved annually. Alternatively, a seven-year plan could reduce the savings to a total of 18.1 billion euros and reduce pressure to 6.3 billion euros in the first year, as reported "Puls24".

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Differentiation of the approaches as to whether politics bow to the EU deficit procedure or the savings will be without it is controversial. Deficit procedure would require lower savings, but could also have negative consequences for the reputation of Austria. "Finance Minister Mayr pleads for the seven-year path to gain more financial scope for economic impulses," said "Puls24". It remains to be seen which specific measures are ultimately decided to meet the requirements of the EU and to reduce the deficit.