EU threatens deficit proceedings against Austria: Finance Minister calms!

EU threatens deficit proceedings against Austria: Finance Minister calms!

Wien, Österreich - On June 4, 2025, the European Commission could take the first step to initiate EU deficit proceedings against Austria. According to [vienna.at] (https://www.vienna.at/eu-koennte-defizitverfahrfahrfahr- against-oesterreich-föpfleien/9452261), an excessive deficit is determined that could lead to a corresponding recommendation. Finance Minister Markus Marterbauer (SPÖ) said that he was "not afraid" of a possible deficit procedure at all.

Austria recorded a budget deficit of 4.7 percent of gross domestic product (GDP) last year and is planning a deficit of 4.5 percent for the current year. Both values ​​are above the defined limit of three percent, which is specified in the Maastricht criteria. The next meeting of the Council of Economic and Finance Minister, which will decide on the proceedings, is scheduled for June 20 in Luxembourg and July 8th in Brussels.

background of the deficit procedure

The European Commission will present its spring package at the European Semester on the same day, which includes economic policy recommendations and reports on budget surveillance. In the stability and growth pact, an annual state deficit of a maximum of 3 percent and public debt of a maximum of 60 percent of GDP is required. If these requirements are not complied with, the Commission will check the public expenditure and the general economic and budget situation, as [the Kleine Zeitung] (https://www.kleinezeitung.at/wirtschaft/19756463/eu-du--defizitleverfahrfahrfahrfahrfahrfahrfahren- opposite- recommendation) reports.

As early as November 2022, the Commission had considered a procedure against Austria, but measures by the FPÖ-ÖVP coalition negotiators were able to avert this at the beginning of the year. Deficit proceedings against several EU countries, including Belgium, France, Hungary, Italy, Malta, Poland, Slovakia and Romania, are currently already underway. Experts emphasize that politicians and the Commission point out that there is no reason for panic.

forecasts and demands

The EU forecasts a decline in economic for Austria as the only country this year, which exerts further pressure on the federal government. The fiscal council chief Christoph Badelt warned that the current savings package is only concerned with the most urgent problems and that additional measures are required to achieve the necessary savings of a total of 6 billion euros in the legislative period. In addition, demands for structural reforms, especially in the area of ​​federalism and pensions, are determined according to how orf

A common plan for reducing the debts is being developed when the deficit procedure is initiated. This procedure could usually take up to four years, although no fines have so far been imposed. It would be the second procedure of this kind for Austria after a first one was opened after the financial and economic crisis in 2008.