Stelzer defends himself against Vienna's budget criticism: Upper Austria delivers!
Stelzer defends himself against Vienna's budget criticism: Upper Austria delivers!
In the past few days, the budget discussions between the federal states and the federal government have gained intensity. Upper Austria's governor Thomas Stelzer (ÖVP) expressed sharp criticism of the demands of the NEOS state secretary Josef Schellhorn. The latter had called for a stronger contribution from the federal states and communities to renovate budgets. Stelzer emphasized that Upper Austria is already making a significant contribution and the economic strength of the companies in the region.
Stelzer speaks against “calls from Vienna” and makes it clear that responsibility for central tasks, such as care and health care, lies in the federal states and communities. The governor sees the need for all parties to pull together and work on an effective overall -state structure.
urgent need for consolidation
The economic framework contributes to the urgency of the discussion. The fiscal council has just emphasized that Austria has to expect high budget deficits by 2028. These are above the Maastricht upper limit of 3% of the gross domestic product (GDP). According to a forecast, the need for consolidation for 2025 is estimated at least 6.3 billion euros in order to avoid excessive deficit procedures, such as boerse-express.com reported.
The consequences of the high inflation, which will lead to rising expenses for pensions and salaries from 2024, contribute to further tightening the situation. At the same time, the income stagnates. According to the fiscal council, the debt rate will increase from 78.6% of GDP in 2023 to 85.0% in 2028, which is 14.0 percentage points above the preliminary crisis of 2019. This development shows the urgent need for far-reaching consolidation measures that have to be implemented independently of EU requirements in order to secure future investments and to ensure long-term debt relief.
concrete measures for the future
Compliance with the new EU fiscal frame will require high, structural consolidation efforts from 2025 to 2028. These efforts aim to minimize budget risks and create scope for future investments. The fiscal council calls for a balanced bundle of measures that take into account both expenditure and income page. In the short term, effective measures should be combined with structural reforms.
The current discussions and the need for consolidation throw a light on the challenging times that lie in front of Austria. The political actors are called to find innovative solutions to ensure financial stability. A profound evaluation of the funding system could help increase efficiency and to open up savings potential, such as DetailsOrt Vienna, Österreich Quellen
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