Shocking austerity plans: Government plans massive cuts in social benefits!

Shocking austerity plans: Government plans massive cuts in social benefits!

In Austria, far-reaching austerity measures are imminent, which could have far-reaching consequences, especially in the pension sector. According to information from the Ö1-Mittagsjournal, the blue-black government is planning a special dividend from the state holding company ÖBAG as well as higher distributions from ASFINAG and the Bundesimmobiliengesellschaft (BIG). This could result in a significant three-digit million amount ORF reported. At the same time, a suspension of the appreciation of pension accounts is being discussed, which could affect all pensions in the long term. These savings measures, initiated by the FPÖ and ÖVP, could also affect social benefits and save up to 150 million euros.

Planned cuts and their consequences

The negotiators have already indicated that the climate bonus, the climate ticket and various tax benefits - including the promotion of photovoltaic systems and electric cars - could also be affected. According to that 5min According to the report, these measures are not only financial cuts, but could also significantly impact support for low-income households. Critics warn that canceling the climate bonus would disproportionately affect poorer people in particular, as they would be burdened more heavily relative to their income.

The coalition negotiations are expected to take a month, although an early agreement by the end of the month is not ruled out. Finance Minister Gunter Mayr expressed optimism about the EU Commission's reaction to the austerity plan, which aims to avoid an EU deficit procedure. As Mayr explained, Austria primarily has a spending problem and not a revenue problem, which explains the design of the austerity package. The upcoming decisions on possible ministerial positions and further details are to be discussed in Vösendorf at the weekend.