FPÖ warns: Austria threatens the debt strudel by 2029!

FPÖ warns: Austria threatens the debt strudel by 2029!

Österreich - On June 16, 2025, the FPÖ business spokeswoman NABG commented. Barbara Kolm critically on the budget presented by the federal government. In her opinion, she described the double budget for 2025 and 2026 of the black-red-pink coalition as inadequate, especially with regard to the desired economic recovery. Kolm argued that the budget for a dangerous course in the dependence on debt and state intervention is heading for and criticized an "number cosmetics" as well as an ideological redistribution, which was more likely to be seen as a crisis veil than as a solution to current problems.

The budget deficit for 2025 is estimated at 4.5 percent of gross domestic product (GDP). The government spending quota is therefore considerable 56.8 percent, which is about ten percent above the average of the European Union. Kolm announced that the new debts could probably reach 90 billion euros by 2029, which would increase the total debt load to just under 500 billion euros. The Fiskalrat warns in this context before an increase in the debt ratio to 91.1 percent until 2029, while the deficits above the Maastricht limit of 3 percent remain.

failed consolidation goals

The forecasts of the fiscal council show that Austria's debt rate should increase from 84.6 percent in 2023 to 91 percent by 2029. High deficits have been recorded in recent years that do not go back despite the planned cuts. In 2023, the total state budget deficit was 4.3 percent of GDP and is forecast to 4.1 percent for 2024. The fiscal council predicts that the deficit will remain over 4 percent in the coming years. Such a budget has also been classified as "unambitious", which increases the pressure to act on the government.

The main causes for these high deficits are the increased expenditure in the public service and social benefits, which are particularly stressed due to the aging of society. Kolm therefore calls for immediate structural reforms to stabilize public finances. She said that without a rigorous consolidation program, the deficits in 2025 and 2026 could increase to 5.3 percent or 5.4 percent of GDP.

political implications

criticism not only practices the financial aspects, but also in the political orientation of the government. It warns of a loss of political sovereignty through the guidelines on the part of the EU that could also harm the economy. In addition, rising interest rate surcharges on loans and deteriorated ratings will lead to an increase in government spending, which will further burden the financial situation. The approval of subsidies that distort competition is also rejected by Kolm.

The federal government is therefore faced with the challenge of reducing the forecast high deficits in order to comply with the Maastricht criteria. These determine that the public debt is not allowed to exceed 60 percent of GDP. The Public debt level is considered the decisive indicator of the state's financial position. In this context, the EU Commission expects a procedure for excessive deficits against Austria, whose recommendation is to be made on June 20th.