Bundeschatz now also for public institutions - how much do you save?

Bundeschatz now also for public institutions - how much do you save?

Österreich - The federal treasure, a safe and low -risk investment, is now also accessible to the public sector. Public units such as federal states, municipalities, universities and public companies can now create their savings directly in government bonds. Finance Minister Markus Marterbauer (SPÖ) announced the innovation on Monday and explained that this would create new options for the public sector. Around 110,000 private investors currently manage a total of four billion euros in federal treasures.

public units benefit from the state's low financing costs. With the new possibilities within the framework of the federal treasure, the debt rate of the Republic of Austria could be significantly reduced. These federal treasures are fixed interest securities from the Republic of Austria, which are available without expenses or fees. They are available in different terms: from one month to one year, including a daily variant, from a minimum amount of 100 euros.

effects on debt

Appropriate for up to 30 billion euros from public units are at banks that could reduce the debt of the federal government by up to seven percent due to a complete disposition in federal treasures. In the calculation of the state debt rate, debts between state sectors are not included. In the meantime, the returns of the ten-year Austrian benchmark bond rose by five basis points to 2.95 percent on Monday, which indicates the continued uncertainty in the financial markets reports the crown .

Some adjustments in the financial sector and the handling of public finances are influenced by new European fiscal rules that came into force at the end of April 2024. These include specific upper limits for the growth of net primary editions in order to achieve deficit and debt goals. At the same time, 22 out of 27 Member States were asked to submit fiscal plans to ensure that the conditions for state finances are observed.

fiscal framework and their challenges

In Germany itself, structural new debt has been a decisive criterion for compliance with the debt rule in accordance with Article 115 of the Basic Law since 2011. The upper limit for the structural net loan is 0.35 percent of the nominal BIP notes. A crucial moment was the declaration of the Federal Constitutional Court on November 15, 2023, which declared the second supplementary budget law 2021 for void and thus made it necessary to clarify the financial conditions.

The reform of the stability and growth pact, which was decided in 2024, stipulates that a special fund can be formed for infrastructure and climate neutrality up to 500 billion euros. There have been significant deficits in recent years, especially during corona pandemic, but forecasts show a decline in the deficit rate to around -2.5 percent of GDP in 2025 according to the monthly reports of the Bundesbank .

The development of debt rates is crucial in many European countries, and a stringent implementation of the rules is required to secure solid state finances. In some highly indebted countries, such as Italy and France, debt rates could continue to increase by 2026, which brings additional challenges for financial policy.