Schellhorn is asking countries to reform: Austria's budget in danger!

Schellhorn is asking countries to reform: Austria's budget in danger!

Vienna, Österreich - Neos State Secretary Josef Schellhorn comments concerned about the current financial situation in Austria, which he describes as "bitterly serious". In a clear appeal, he calls for a stronger contribution from countries and communities to the state's budget renovation. In view of the challenges, Schellhorn indicates the need for comprehensive reforms to improve the budget situation in the long term. He emphasizes that it is crucial to step into dialogue again with the countries and communities in order to find solutions together. The chairman of the Governor Conference, Wilfried Haslauer from the ÖVP, has already supported great reforms.

In order to achieve the desired budget goals, Austria is aiming for a consolidation volume of 6.3 billion euros for 2025 and 8.7 billion euros for 2026. Meanwhile, SPÖ State Secretary Michaela Schmidt warns of the possible negative effects of savings that could also burden the economy. However, there is unity in the federal government to save and implement reforms. Negotiations on savings in the individual ministries are currently being conducted with Finance Minister Markus Marterbauer (SPÖ) and State Secretary Barbara Eibinger-Miedl (ÖVP).

budget consolidation and EU negotiations

The Federal Government plans to save a total of 1.1 billion euros in the departments. The exact details of the distribution of these savings are to be presented in the coming days. In this context, Austria's success is significant relief when avoiding EU deficit procedure.

On Tuesday, an important meeting between Finance Minister Gunter Mayr and the EU Commissioner Valdis Dombrovskis took place to discuss a package of measures. The European Commission has now confirmed that the measures carried out by Austria are successful and that the deficit can reduce the deficit in 2025 to less than 3 %. Commissioner Dombrovskis informed Minister Mayr that the Commission would recommend that the Council be initiated not deficit proceedings against Austria.

secure financial stability

The avert the deficit procedure is maintained by Austria's budget -political sovereignty. In addition, this enables the country to act on the international financial markets at cheaper conditions, which is particularly important in view of a previously deteriorated view of the Rating Agency Fitch. The Ministry of Finance is therefore working on the implementation of the negotiated measures to enable the upcoming government to start a quick start to budget consolidation.