EU deficit procedure: How the Austrians really think about it!

EU deficit procedure: How the Austrians really think about it!

Österreich, Land - On March 28, 2025, the MTV show "Current: Die Woche" with moderator Meinrad Knapp, politician Thomas Hofer and opinion researcher Peter Hajek will present a survey on the hiring of the Austrian population to a possible EU deficit procedure. In the survey, which was carried out from March 24th to 27th and 500 entitled to vote: In the inside, it can be seen that the population is largely indifferent to the topic. According to the results of the survey The support and rejection of the deficit procedure is particularly visible depending on the group of voters. 36% of the voters show: inside the green consent to a possible procedure, while only 30% of the ÖVP and SPÖ voters: do this. On the other hand, 43% of the FPÖ voters reject: inside a deficit procedure, which indicates concerns about a possible patronage by the EU.

Austria successfully averted the EU deficit procedure after a meeting between Finance Minister Gunter Mayr and EU Commissioner Valdis Dombrovski. The feedback from the European Commission confirmed that the measures submitted by Austria could reduce the deficit in 2025 to less than 3%. Wie BMF berichtet, konnte somit die budgetpolitische Souveränität Österreichs bewahrt werden. This means that Austria is not checked every six months by the European Central Bank and the European Commission.

The avert the deficit procedure has positive financial consequences for Austria, including lower interest costs on the financial markets, which facilitates the inclusion of loans at more favorable conditions. These developments are particularly relevant because Fitch had worsened the view for Austria due to an impending deficit procedure. However, with the turning of the procedure, Austria has the opportunity to continue to operate at advantageous conditions.

Financial policy challenge

Austria still has to struggle with the challenge of complying with the Maastricht criteria that are defined in the stability and growth pact (SWP). The SWP, which was closed in 1997 and reformed in 2023, stipulates that the budget deficit must not exceed 3% of the gross domestic product (GDP). Current data show that Austria is expecting a new debt of 3.7% in 2024 and 4.1% in 2025, with the debt ratio of around 80% Exxpress .

The next government will have the task of checking the specific measures to implement the package adopted and ensuring that Austria submits a budget plan by the end of the year. At the earliest in January, a decision about a possible deficit procedure is made in a meeting of the Minister of Economic Affairs and Finance and it is clear that the need for consolidation could be over 20 billion euros without deficit procedures.

The coalition negotiations between the ÖVP, SPÖ and Neos demonstrate that the topic of deficit procedures also plays an important role in Austria's political agenda. Agreement on savings and measures is crucial to master the financial challenges and thus to strengthen the country's ability to act.