Kaniak calls for new elections: reform arrest and debt burden in Austria!

Kaniak calls for new elections: reform arrest and debt burden in Austria!

Österreich, Land - The FPÖ National Council MP Gerhard Kaniak expresses sharp criticism of the current government under the SPÖ finance minister and compares them to the predecessors of the ÖVP. Kaniak compares the current government Situation with the words of Albert Einstein repeating mistakes and is pessimistic about possible changes. In his speech, he describes the coalition as a "black-red-pink" and finds that it is pursuing a continuous reform arrest and a debt policy that ultimately goes at the expense of the population. If the government is not able to present better solutions, Kaniak demands new elections.

The difficulties in front of Austria cannot be denied. Kaniak criticizes the ÖVP and its coalition partners for the denial of economic reality. According to his statements, the government's measures to combat economic problems are insufficient. Austria has been in good debt during Corona pandemic, more than other European countries, which he attributes to the lockdowns and the restrictive measures. These strategies, according to Kaniak, result in a permanent recession that makes Austria a "final light".

economic situation and budget deficits

The current debt burden of Austria, which includes the federal government, the federal states, communities and social security institutions, amounts to around 402 billion euros. Economists warn that the current situation has potential “liquidity problems”, especially in view of a significant government bond of nine billion euros, which is due in April. Margit Schratzenstaller from the Wifo and Markus Stix from the Oebfa, however, find that Austria will probably not be insolvent reports .

The government has introduced an automatic budget provisorium since the beginning of January, which limits the expenditure at the level of the previous year and the new debt to half the possible financial debt for 2024. However, a deficit procedure could be initiated, depending on the review in May by the EU Commission and a credible consolidation plan. Rating agencies observe Austria due to political uncertainty and increasing debt, which could have a negative impact on borrowing.

financing needs and future prospects

The Nettofinancial Need of the Confederation from January to September 2024 is estimated at 15.4 billion euros, which includes a 13.1 %increase in payments compared to the previous year. Higher pension expenses, a new financial equalization and increasing personnel expenditure are the main reasons for this development. At the same time, the income, especially from sales tax revenue and the real estate sector, are weak, while dynamic developments in wage tax and divident-based income are recognizable found .

Overall, it indicates that the expected Maastricht deficit for 2024 will be 3.3 % of GDP, according to the BMF estimates, while the Fiscal Council and the EU Commission expect a higher deficit of 3.9 % or 3.6 %. This development could bring the public debt situation closer to 79.3 % of GDP, which illustrates the financial challenges of Austria.