Budget hearing in Vienna: Experts demand drastic reforms!

Budget hearing in Vienna: Experts demand drastic reforms!

On Tuesday, the budget hearing took place in the parliamentary budget committee, in which Finance Minister Markus Marterbauer (SPÖ) addressed the challenges of Austrian budget policy. In his speech, which he held three weeks ago, the call for extensive structural reforms, especially in the areas of federalism and pensions. Experts such as the fiscal council chief Christoph Badelt (ÖVP) spoke up and pointed out that the current savings package only stuffed the most urgent holes. According to Badelt's assessment, around six billion euros are missing in this legislative period to comply with the EU deficit limit of three percent of GDP.

Margit Schratzenstaller from WIFO, nominated representative of the Greens, expressed her doubts about the budget success. In her opinion, this is strongly dependent on the results of the Taskforces set up. Monika Köppl-Turyna, invited by the Neos, expressed skepticism about the budget consolidation; She called for a pension reform to sustainably improve the financial situation. Martin Gundinger from the FPÖ warned of a future deterioration in the budgetary situation and spoke out for drastic reductions in government spending. Interestingly, Gundinger proposed an economic policy based on the model of Argentina under President Javier Milei.

demands for reforms and measures

The discussion in budget hearing revealed a wide range of opinions about the necessary steps to use budget consolidation. Georg Feigl from the Chamber of Labor (AK) praised the consolidation measures and the government's employment policy initiatives. The appeal from Schratzenstaller and Badelt to introduce an inheritance tax and an increased property tax met with great interest. At the same time, Köppl-Turyna expressed her concerns about the high tax rate that could have a negative impact on the country's competitiveness.

The increasing debt also represented a central topic. Gundinger demanded a surplus to reduce debt and made it clear that savings in climate protection should not be sufficient, while environmentally harmful subsidies such as the commutereuro are being expanded.

The budget design 2024

The budget design for 2024 provides for more funds for universities, national defense and a free climatic for 18 year olds. The Ministry of Finance expects income of EUR 102.6 billion and expenditure of 123.5 billion euros, which results in a deficit of 20.9 billion euros. The aim is to keep the Maastricht limit of 3 percent deficit by 2027 and at the same time keep the public debt rate below 77 percent of GDP.

Badelt called for clear targets in financial equalization and criticized additional expenditure that arises without accompanying reforms. He warned of the continuation of debt policy and warned a long -term pension reform. Gundinger emphasized the need for reducing bureaucracy and reforms in the education system in order to meet the requirements of time.

recommendations of the fiscal council

The fiscal council, which submits assessments of budget and economic development at least twice a year, made a passionate appeal for household renovation in his recommendations in December 2024. Consolidation should be carried out without taboos and must quickly include effective measures and structural reforms. The goal should be established that the EU-wide fiscal rules are observed in order to restore the debt relief. In addition, the support must be evaluated in order to identify efficiency increases and savings potential.

These recommendations reflect the urgent need not only to address the current deficits, but also to react proactively to future challenges. With increasing demands on the state budget and the pressure to ensure sustainable housekeeping, Austria faces significant financial and political tasks.

For more information about the budget hearings and the recommendations of the fiscal council, see the reports on vienna.at , parlament.gv.at and fiskalrat.at an.