Budget crisis: Experts urge reforms and financial clarity!

Budget crisis: Experts urge reforms and financial clarity!

As part of a four -hour hearing in the budget committee, which took place on June 3, 2025, the focus of the federal input for 2025 and 2026 was discussed intensively. The focus was on political reviews and questions from the MPs. Experts such as Christoph Badelt from the Fiscal Council and Monika Köppl-Turyna from Ecoaustria were interviewed to discuss concrete suggestions to secure the budgetary situation. While the FPÖ expressed doubts about the budget's crisis and competitiveness, Greens called for a quick reaction to the ongoing economic structure crisis.

Finance Minister Markus Marterbauer was optimistic about the fiscal structure plan and emphasized the need for investments in municipalities. Badelt referred to the urgency to check large spending blocks, including salary increases in the public service and the pension increases. Köppl-Turyna advocated comprehensive pension reform and a flatter control structure to strengthen the location.

Problems and measures for budget consolidation

The debate made it clear that the previous consolidation packages are step in the right direction, but further measures remain necessary. According to a report by Ecoaustria, an increase in debt is expected, which could increase over 190 % of GDP by 2060, with the main driver for this being the public pension, health and care expenditure. These expenses urgently need to be adapted to cope with the challenges of the future.

in the Hearing SPÖ MP expressed their concern about the financial situation of the communities and their effects on the labor market and education. Marterbauer also presented changes in the Environmental Promotion Act, which include new funding for heating boilers from 2026. While Finance Minister underlined the importance of savings in the administration, the neos participation called for the removal of dual-ways in funding.

long -term effects and requirements

The long -term growth forecast has remained around 1 %since the financial crisis. Kai Jan Krainer from the SPÖ called for a “cassalister” and clear communication about the budget to the population. He announced that the budget committee forwards the Federal Calculation Deployment 2023 with votes from the ÖVP and the Greens to the plenary, whereby the budget deficit of the past year was around 8 billion euros, which was below expectations.

economists warn that public debt is not only a short-term but also long-term challenge. If an ecosocial tax reform with a CO2 price of 100 euros is introduced, the debt rate could be reduced by up to 25 percentage points. However, this requires a clear strategy and political acceptance for the necessary consolidation measures.

The implementation of the proposals from the hearing will be crucial for whether Austria can comply with the EU requirements for budget consolidation. In view of the multitude of opinions and the complexity of the financial situation, it remains to be seen which specific steps the government will actually implement.