Austria's radical austerity measures: Who has to bleed now?

Austria's radical austerity measures: Who has to bleed now?

Österreich, Österreich - Austria faces significant financial challenges, since the government started combating an impending EU deficit procedure from April 1, 2023. The government is planning savings of at least 6.4 billion euros by the end of 2023 to address EU electronic warning signals. The first consolidation package has a volume of 1.25 billion euros, which was decided in March. Measures such as increasing tobacco taxes and the increasing of electric cars have been in force since April.

The most drastic measure is the deletion of the climate monus, which is to save Austria around two billion euros. This decision primarily affects poorer households in the country that are dependent on cars, as the Farecarbon project shows. In addition, the health insurance contribution for pensioners will be increased to 6 % from June 1, 2023. The government has also announced that unclear savings of 1.1 billion euros are expected in the ministries, but so far the savings there are only marginally.

measures to turn away the deficit procedure

The initiative to implement these measures was originally designed by the blue-black coalition and now includes numerous adjustments that were made in black, red and pink as part of an agreement between the parties. According to kosmo , the main points of the savings package are the abolition of the climate monus, the introduction of a bank tax and increases in various tax areas.

• abolition of the climate monus for savings of around two billion euros.
• partially support for commuters from 2026 by a deduction.
• Bank tax will be increased to 500 million euros per year from 2025.
• Extension of over -profit tax for energy companies.
• Tax increases for large real estate transactions and changes to foundations.

On Tuesday, the Ministry of Finance, represented by Finance Minister Gunter Mayr, reported that Austria was able to successfully avert the impending deficit procedure. Meeting with EU Commissioner Valdis Dombrovskis confirmed that the measures carried out would enable the deficit to be reduced under 3 % in 2025. This development was published on the Finance Ministry after a letter from Dombrovskis.

long -term perspectives

With the avert the deficit procedure, Austria preserves its budget policy sovereignty, which means that the country is not regularly checked by the European Central Bank and the European Commission. This has a positive impact on Austria's ability to accept money on the financial market on the financial market in the future.

The upcoming government will monitor the implementation of the measures and must quickly deal with budget consolidation. While the current austerity measures are controversial in Austrian politics, the influence on the future financial health of the country will be observed closely. Several legislative periods and political decisions will be crucial for how sustainable these measures can work.

Overall, Austria faces a critical phase in which far -reaching decisions have to be made to ensure the country's financial scope for action for the coming years.