FPÖ plans ministerial position against Brunner: The mega deficit strikes back!

FPÖ plans ministerial position against Brunner: The mega deficit strikes back!

The political landscape in Austria is deeply shaped by the increasing budget worries and the continuing criticism of the financial policies. The Freedom Party (FPÖ) plans to put former Finance Minister Magnus Brunner in front of the Constitutional Court due to a massive public deficit. Brunner, who was in office from December 6, 2021 to November 20, 2024 and is currently acting as an EU Commissioner for Migration, is faced with demands, which in his opinion are unfounded. The planned ministerial position was OE24 that the FPÖ would like to bring this in during the budget week.

In the center of the allegations, the increase in public debt by 22.6 billion euros is a total of 394.1 billion euros in Brunner's term. This leads to a debt rate of 81.8 percent, which is a record. Although Brunner originally planned to hold the deficit below the Maastricht limit of 3 % of the gross domestic product (GDP), it was 4.7 %. FPÖ General Secretary Christian Hafenecker demands that Brunner have to prove that he has violated the regulations of the Federal Constitution or Laws. In the event of a conviction, Brunner could lose his office and withdraw his right to vote.

forecasts and deviations

The topic of the public deficit is discussed by Brunner himself, explaining divergences between the forecasts of the Ministry of Finance and the assessments of the fiscal council. After the National Council elections on September 29, the Ministry of Finance decided on October 3 with a deficit of 3.3 %, while the fiscal council had already predicted a deficit of 3.4 %. Previously, a value of 2.9 % had assumed. Brunner explains that the forecasts of the Ministry of Finance are based on WIFO data that are regularly adapted. Wifo predicted a deficit of 3.2 % in June.

The reasons for the higher budget deficit are diverse. They range from the suspension of income through cold progression to the financial requirements from the new financial equalization, which costs 4.2 billion euros for the states and municipalities, to the effects of inflation and the introduction of the new non -profit law law. In view of these challenges, Brunner does not offer any specific advice for his successor, but it recommends that the “claim to think”, use the money, to reduce the money, to reduce double tracks and to increase expenditure efficiency.

Maastricht criteria in the focus

These developments are done against the background of the Maastricht criteria, which determine that a state can only take part in the European Economic and Monetary Union if the public deficit does not exceed 3 %. Austria's current deficit is above this threshold. In accordance with the categories of the European system of economic accounts (ESVG 2010), Statistics Austria shows the ({…}) difference between state income and government spending. The investigation and allegations against Brunner will therefore bear both legal and economic dimensions.