Austria in the deficit procedure: urgent reforms required!

Austria in the deficit procedure: urgent reforms required!

Wien, Österreich - Austria faces considerable challenges within the framework of the EU deficit procedure. Magnus Brunner, former finance minister and current EU Commissioner of the ÖVP, has described the economic situation in Europe as challenging. With an average growth of only 1.1 percent, Brunner sees numerous uncertainties in global trade and in business. Austria has a budget deficit of 4.7 percent of GDP last year and is planning a deficit of 4.5 percent this year. In doing so, the country clearly exceeds the permitted limit of three percent, which is determined by the Maastricht criteria. Krone reports that a medium-term timetable was already submitted to the EU Commission in April.

After the opening of the deficit procedure, all budget -relevant decisions in Vienna must be coordinated with the Commission in Brussels. EU economic commissioner Valdis Dombrovskis emphasizes the need to consistently follow the medium-term structural plan. By October 15, Austria must submit a next general budget plan to contain measures to reduce the deficit. The Federal Government has set itself the goal of getting out of the EU deficit procedure by 2028. is.

reactions and measures

Finance Minister Markus Marterbauer expressed optimistic and did not show afraid of the procedure. However, experts demand extensive structural reforms, especially in the areas of federalism and pensions. The chairman of the fiscal council, Christoph Badelt, emphasized that the current savings package only stuffs the most urgent holes. There are about 6 billion euros in this legislative period to reach the Maastricht border. Class = "Source_3"> Bundesbank points out that the Maastricht criteria determine clear reference values for the government Deficit and Government to ensure stable public finances in the euro zone.

Austria is not the only country in the focus of the EU. In addition to Austria, countries such as Finland, Latvia and Spain are also checked. While Finland does not enter a deficit procedure despite a deficit of over 4 percent due to positive measures, the situation in Romania looks different: despite the ongoing procedure, there is no recognizable progress. The deficit procedure could therefore have serious consequences for Austria if the necessary measures are not taken.