Austria on the abyss: Schuh warns of debt explosion and EU requirements!

Austria on the abyss: Schuh warns of debt explosion and EU requirements!

As part of today's budget debate in the National Council in Vienna, the National Council MP Harald Schuh from the FPÖ has practiced sharp criticism of the federal government. He pointed out the country's high debt burden and put the recent downgrading of the rating at the center of his argument. "Austria is a country of debt mountains," said Schuh, who also emphasized that Austria is doing the EU as net payers every year. The burden of the EU payments for shoe is strong contrast to the necessary investments in the well-being of the domestic population.

A central point of the debate was the renaturation proposals proposed by the EU, the estimated costs of which amount to six to eight billion euros. Schuh expressed doubts about the actual advantages of these measures for the environment and instead called for focus on the needs of the domestic population.

EU reforms and their effects

The statements of shoe are made against the background of significant reforms of the stability and growth pact, which were decided on April 29, 2024 by the EU Council of Ministers, as Tagesschau This reform follows the approval of the EU Parliament and aims to define clear upper limits for government debt and budget deficits of the member countries. Now high -indebted countries whose debt level is more than 90% of GDP have to reduce their debt rate by 1% annually, while countries with a debt level between 60% and 90% have to reduce 0.5%.

In the context of these reforms, the Member States, who fight over 3% of GDP with a deficit quota, are threatened that they can be proven with sanctions. Critics of the new regulation express concerns that important investments, especially in the area of ​​climate protection and social projects, could be inhibited by the strict guidelines.

invest in the future

The new rules should give priority to investments and strengthen the national responsibility of the member states. The goal is to make the system more credible overall. These reforms were accepted with 431 yes votes and 172 no votes as well as 4 abstentions from the EU Parliament, with Europarl in detail.

The reform should not only prevent a return to an austerity policy, but also set incentives for necessary investments. Co-rapporteurs and politicians such as Esther de Lange and Margarida Marques have pleaded for financial policy flexibility for climate investments and social aspects in the new legal situation.

In summary, it can be said that the current debate is embedded in Austria in the more comprehensive discussions about government debt and investments within the EU. Harald Schuh's critical position not only reflects the concerns about the high debt burden, but also the challenges that many member states face in the face of new EU requirements.