Budget crisis: Austria threatens EU deficit procedures in 2025!
Budget crisis: Austria threatens EU deficit procedures in 2025!
The emergency of the Austrian state treasury is heading! ÖVP, SPÖ and NEOS work with high pressure on their government program, which should be completed by Tuesday evening, as the Krone . They want to present the public plans on Wednesday or Thursday. But there is a huge problem in the room: the impending EU deficit procedure. According to current estimates, the planned savings of 6.4 billion euros are not sufficient to stabilize the state finances - the hole could be up to two billion euros lower than expected.
The EU Commission expects a decision on possible emergency measures by the end of June, according to the Interim Minister of Finance Gunter Mayr. The economic situation has further deteriorated in the past five months, which leads to lower tax revenue and insurance contributions. With a current deficit of 19.1 billion euros, about 3.9 percent of GDP, the financial situation is alarming, explained Christoph Badelt, President of the Fiscal Council, in which . Necessary measures such as massive cuts in climate funding and social benefits are in the house.
planned savings and tax increases
Several savings have already been leaked to rinse billions in the state financial cash in the coming years. The coalition is considering abolishing the Klimabonus, which could save 2.3 billion euros alone. Significant cuts in social benefits are also conceivable, including the deletion of automatic adaptation to inflation. These measures show that the turquoise-blue government is seriously relating to savings opportunities to reduce the deficit.
In addition to reducing expenses, the government also thinks of tax increases in order to generate additional income of almost one billion euros. Existing taxes, such as tobacco products, are to be expanded. State companies should also make higher contributions to relieve the budget. The exact details of the measures are expected on Thursday, which means that both the public and political attention is paid to the more urgent financial decisions.
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| Ort | Brüssel, Belgien |
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