Vienna faces a deficit explosion: 3.8 billion euros in sight!

Vienna faces a deficit explosion: 3.8 billion euros in sight!

Wien, Österreich - Vienna's Finance City Councilor Peter Hanke (SPÖ) has recently sharply denounced the federal financial policy and in particular focused on the ÖVP. He denounced that the party, of all people, who has caused the largest budget flap in the history of the republic, now points to others with its former finance minister Magnus Brunner. Hanke spoke of "political child movement at a high level" and referred to the difficult financial situation of the federal states and communities, which he largely attributes to federal measures. By abolishing the cold progression and the ecosocial tax reform, the federal states lack a total of 880 million euros in income, whereby Vienna alone has to calculate less with over 420 million euros, as reported today.

growing deficits and political blame

The situation in Vienna is serious. The city could achieve a deficit of up to 3.8 billion euros, since the previous numbers have not yet been finally set. However, Hanke emphasized that, despite this tense finance, Vienna has a stable budget situation and has a fortune of around 36 billion euros. According to the rating agency Moody’s, the city has an excellent rating of 'AA1', which underpins financial health. Nevertheless, the current financial policy remains an issue that also affects other federal states. Even the Upper Austrian ÖVP state captain Thomas Stelzer had already criticized the federal budget policy, as reported by Wien.orf.at.

The Viennese ÖVP counters the allegations and sees responsibility for the poor financial situation in the city government. Club chairman Markus Wölbitsch and finance spokesman Manfred Juraczka emphasize that the increase in the deficit from 2.2 billion euros to 3.8 billion euros must be regarded as a structural problem in Vienna. They demand intelligent saving and a reform of minimum security in order not to endanger economic growth. "The city government must now act to bring Vienna to the financial situation," said the haunting appeal of the two politicians.