Schellhorn calls on communities to participate in the budget crisis!

Schellhorn calls on communities to participate in the budget crisis!

Vienna, Österreich - On March 26, 2025, Neos State Secretary Josef Schellhorn expressed in a current statement that Austria's financial situation was to be classified as "bitterly serious". It demands a stronger contribution from countries and communities to renovate budgets in order to successfully master the challenges in the state budget. Schellhorn emphasizes the necessity of far -reaching reform policy measures that should contribute to improving the budget situation. The responsibility for the EU deficit procedure is currently with the EU financial ministers, whereby Austria can only bring in an improved reform proposal. This situation illustrates the urgency of renewed discussions with the countries and communities.

The support for these reforms also comes from Wilfried Haslauer, the chairman of the Gazard's Conference and member of the ÖVP. A consolidation volume of 6.3 billion euros for 2025 and 8.7 billion euros for 2026 is planned. On the other hand, SPÖ state secretary Michaela Schmidt expresses concerns about possible savings that could have negative effects on the economy. Despite these different views, there is agreement in the federal government about the need for austerity measures and reforms.

negotiations and savings

Current negotiations on savings in the ministries are under the direction of Finance Minister Markus Marterbauer (SPÖ) and State Secretary Barbara Eibinger-Miedl (ÖVP). Savings are planned for a total of 1.1 billion euros. Details for the exact distribution of these savings will be presented in the coming days.

The challenges for Austrian financial policy are not new. In an earlier step, the European Commission Austria had given time until mid-January 2025 to present a package of measures to avert an impending EU deficit procedure. This package was discussed in a meeting between Finance Minister Gunter Mayr and EU Commissioner Valdis Dombrovski, and the discussions were successful.

successful defense against the deficit procedure

The European Commission confirmed that Austria was able to avert the deficit procedure. In a written letter it was announced that the measures presented will probably help to reduce the deficit in 2025 to less than 3 %. This means an important relief for Austria because the country can preserve its budget policy sovereignty and is not checked every six months by the ECB and the European Commission.

Finance Minister Mayr was pleased to say about the success and emphasized that the averting of the Austria proceedings would allow to continue to accept money on the international financial markets at cheaper conditions. The Rating Agency Fitch had previously worsened the view for Austria because a deficit procedure was expected. Due to the efforts made, financial relief on the markets is now achieved and the government is preparing the implementation of the agreed measures.