Austria's savings plan: 24 billion euros are on the brink!

Austria's savings plan: 24 billion euros are on the brink!

Austria faces an enormous financial challenge: The new federal government has to save between 18 and 24 billion euros, as the EU Commission announced on Sunday. In this context, Finance Minister Gunter Mayr calls concrete savings potential, such as the abolition of the climate bonus, which would cost around two billion euros a year, as well as the deletion of educational leave, which could save around 650 million euros. However, the debate about these measures is within the coalition talks between the ÖVP, SPÖ and NEOS, whereby the ÖVP is urging the numbers from Brussels before detailed savings are determined, reports OE24.

In order to cope with the decline in budget deficit, the government plans to submit a package of measures by mid -January to reduce the deficit to less than three percent for 2025. If this is done convincingly, the EU could do without a deficit procedure. However, if such a procedure occur, however, it could be chosen between a four or seven-year consolidation path. According to the data transmitted by the EU, the four -year way would require annual savings, but which would be lower overall than with a seven -year -old path, also explains Eurostat.