Fight against the debt mountain: government is planning drastic savings!
Fight against the debt mountain: government is planning drastic savings!
The Austrian government faces the challenge of fundamentally reforming its financial budget structures. On June 7, 2025, the Ministry of Finance took a first step by reporting planned savings of 6.4 billion euros for 2025 and another 8.7 billion euros for 2026. These measures are part of an ambitious consolidation package that seems urgent in the current economic situation. The EU has also announced measures against the growing debt mountain of Austria, which increases the pressure on the government immediately. [5min.at] (https://www.5min.at/5202506070810/364-mi employee-kostet-uns-gregation-jeden-monat/) reports that the planned deficit for 2025 should be EUR 18.1 billion, which corresponds to 4.5 percent of GDP
The structure of the ministerial cabinets was also discussed as part of the budget consultations that took place in the parliamentary budget committee. According to the government, 364 employees are currently working in the ministries, which is 31 less than under the previous black and blue coalition. The monthly costs for this cabinet amount to around 2.8 million euros. The staff is particularly large in the ÖVP-led ministries, including the Ministry of Defense with 35 employees and the Interior Ministry with 29 employees. This size of the cabinet causes criticism, especially from the green club chairwoman Alma Zadić, which denounces "bloated structures".austerity measures and political reactions
Finance Minister Markus Marterbauer announced a “transparent” budget in the course of the current savings measures and made it clear that reform steps are necessary to address the expenditure problem. The FPÖ, under the direction of General Secretary Michael Schleditz, rejects the allegations of the size of the cabinet and speaks of "fake news". Schledlitz argues that Herbert Kickl's cabinet had an average of 28 employees, which means that it represents the figures of the current government as faulty.
The also planned dismantling of the climate monus and the reform of the educational leave, which is now to be replaced by targeted qualifications, find both support and resistance. The FPÖ warns of an increase in debt of 80 billion euros and criticizes the government for its budget, which is described as "forgetting future". The Greens are calling for stronger focus on families and climate protection, while ÖVP representative praise the budget as balanced.
expert opinions and views
experts from various areas express themselves on the financial situation of Austria. The urgency of structural reforms, especially in the areas of federalism and pension system, is emphasized. Christoph Badelt, the fiscal head, emphasizes that the existing savings package is only concerned with the most urgent problems and that another six billion euros are necessary to meet the EU requirements. The Wifo economist Margit Schratzenstaller and the Eco Austria expert Monika Köppl-Turyna are skeptical about the success of the budget consolidation and demand real structural reforms.
Overall, the challenges of Austria are considered large on the way to a solid budget structure. It remains to be seen in the final budget, which is to be decided on June 18. parlament.gv.at and orf.at report on ongoing discussions and the need to master the balancing act between savings and necessary investments.
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