Slate: Budget crisis threatens! State debt are at record height!
Slate: Budget crisis threatens! State debt are at record height!
Österreich - On March 24, 2025, the freedom of budgets NABG calls for. Mag. Arnold slate more determination in the budget renovation of the Austrian government. In a current statement on the ongoing financial challenges, Schiefer emphasizes that the goal must be the return of the government debt to the level in front of Corona pandemic. In doing so, he criticizes the government's previous approach as a "budget mourning game" in three files.
Slate warns that the lack of savings on the output side endanger the financial scope for important relief and economic impulses. The financial report forecasts an increase in government debt, which is particularly worrying, since the ÖVP and the Greens have started over 120 billion euros in new debts since the last FPÖ government participation. In order to control the refinancing costs, compliance with the three percent new debt limit is essential.
EU deficit procedure in the focus
Austria is now facing the real threat of EU deficit procedure. The country's deficit amounts to around four percent of gross domestic product (GDP), which significantly exceeds the limit of less than three percent by the Maastricht criteria. According to
To avert a deficit procedure, a credible renovation plan is essential. This must be transmitted to Brussels as soon as possible and is to be rated on January 21, 2024 before the next Ecofin Council. ÖVP boss Christian Stocker and FPÖ boss Herbert Kickl plan to implement savings of around 6.4 billion euros within seven years in order to push the deficit back under the required limit.
criticism of the government
In his criticism,slate expresses that the government downplayed the impending problem. The first act of the "budget mourning game" is the displacement of the EU deficit procedure, followed by a presentation of weak economic forecasts, to justify the non-reaching of the budget goals. He also comments on possible new taxes and the willingness of the government to accept a deficit procedure.
The issue of deficit procedures is issued by the EU Commission and the Council of the EU Finance Minister and can be proven with sanctions-but so far without fines. Such a measure could offer more flexibility in times of crisis to ensure economic stability and to counteract undesirable developments in economic policy at an early stage.
Austria is not the only member country that is examined. Other countries such as France, Italy and Belgium are also faced with similar challenges. This would be the second EU deficit procedure for Austria, the first was opened after the financial and economic crisis in 2008. Slate emphasizes the need for a credible renovation course to secure Austria's international creditworthiness and minimize future risks.
In the upcoming budget speech on May 13, the topics of increased costs for national defense, security and asylum are addressed, but it remains to be seen whether these measures can generate enough pressure from the government to initiate the necessary steps in the direction of a more stable budget.
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