Budget hole grows: What the new coalition is now really plans!

Budget hole grows: What the new coalition is now really plans!

Österreich - On March 27, 2025, the triple coalition from the ÖVP, SPÖ and NEOS now has almost a month in office. Despite the externally well -presented cooperation between the coalition partners, they are faced with an increasingly critical financial situation. The budget hole is now twice as large as originally expected, which the government presents with considerable challenges. An EU deficit procedure seems inevitable because the target brand of a zero deficit, which was formulated at the beginning of the 2000s, is a long way off. The deficit of Austria is currently 19.1 billion euros, which constitutes about 3.9 percent of gross domestic product (GDP).

In the upcoming "Round of the editor -in -chiefs" at ORF III, these topics will be discussed intensively. On March 28, 2025 at 8:15 p.m., the editor -in -chief Klaus Herrmann (Kronen Zeitung), Petra Stuiber (Der Standard), Florian Asamer (the press), Meret Baumann (Neue Zürcher Zeitung) and Gernot Bauer (profile) will comment on the financial difficulties and the geopolitical framework. In addition to the budget situation, the judgment against the former finance minister Karl-Heinz Grasser is also on the agenda, which has to compete in a few weeks. Details for discussion are available online, whereby the focus is on the difficulties with which the government is confronted.

financial challenges and savings

The financial situation has deteriorated rapidly in the past five months since the election. Tax revenues and insurance contributions have dropped, which also puts the planned savings of 6.4 billion euros under pressure for 2025. Experts doubt that these savings will be sufficient and warn that the deficit could be higher by around two billion euros than initially expected. The President of the Fiscal Council, Christoph Badelt, emphasized that a deficit procedure is possible, but is not a disaster. The next EU economic forecast will be released in May and could have further negative effects on the economic situation.

Finance Minister Gunter Mayr pointed out the poor developments in the income from the contributions of the federal states and communities. In the meantime, the NEOS recently broken off initial negotiations because they considered it inadequate that the ÖVP and SPÖ did not show enough zeal for reform. Nevertheless, the NEOs decided to go to the emergency renovation and expect a decision by the EU until the end of June.

The coalition is therefore faced with an indispensable presentation of its government program, which is planned for Wednesday or Thursday. This content will be crucial in order to give citizens an insight into the strategy to cope with the current crisis situation. The government will undoubtedly continue to challenge the uncertain economic situation and could have long -term effects on political stability.