Fight of debt: Austria's budget in the crisis - what is now planned!

Fight of debt: Austria's budget in the crisis - what is now planned!

Austria is under pressure after the WIFO has published alarming forecasts on state finances. WiFo boss Gabriel Felbermayr strongly warned of a dramatic increase in public debt, which could increase to around 500 billion euros by 2029. This corresponds to a quota of 86.5 percent of gross domestic product (GDP), which far exceeds the Maastricht limit of 3 percent for the budget deficit. A deficit of 4 percent of GDP is expected for 2025, which indicates dangerous development if not immediate measures are taken. As

Felbermayr called for a quick acceleration of the budget measures to stabilize the current situation. He emphasized that it was time to bluntly discuss savings and to initiate concrete steps in order to contain the debt. Among the possible cuts, the climate monus and the indexing of the social benefits were mentioned, while numerous state grants were also being tested. "There must be no taboos," he said, while he warned the impending deterioration in Austria's creditworthiness. This could negatively influence the conditions for the government bond, as already vienna.at

urgent need for action

The situation is also intensified by increasing energy costs and the uncertainties in the markets, which put a lot of strain on the expenses of the state. Felbermayr pointed out that without the government's measures could be necessary to check the upper limit for new debts shortly, since the current financial situation cannot be maintained. Against this background, the WiFo boss advocated a comprehensive reform strategy to stabilize the Austrian economy. The upcoming decisions of the new government are closely observed because they are taking serious consequences for the financial future of the country.