Budget crisis: politicians under pressure - how should Austria save?

Budget crisis: politicians under pressure - how should Austria save?

Bundeskanzleramt, Wien, Österreich - The time is urged in the Federal Chancellery: On Wednesday, Chancellor Karl Nehammer, SPÖ boss Andreas Babler and Neos boss Beate Meinl-Reisinger gathered on an important round table to advise on the alarming economic situation and the impending budget holes. This exchange took place as part of the coalition negotiations, and the situation is serious: according to estimates, a hole in the budget gaps between 15 and 23 billion euros. Companies slide into bankruptcy and let many employees, especially before Christmas, worry about their jobs. According to Today.

The heads of government worked together with business experts such as Christoph Badelt and Gabriel Felbermayr. Badelt emphasized the urgency of tax increases and reforms in order to manage the massive consolidation volume: "This needs both expenditure and revenue measures." While Meinl-Reisinger found the sudden exchange of arguments between the parties to be inappropriate, Babler urged a "budget truth" to pave the way for binding financial decisions. Experts also demand that the reduction of the deficit must be tackled from both sides, said Felbermayr. Nevertheless, The press skeptically opposite the planned tax increases, which puts the negotiators under pressure to find clearer alternatives.

The uncertainties are reinforced by the current economic data: the gross domestic product (GDP) fell 0.6 percent in the third quarter, which fueled the negative forecasts for the current year and 2025. These developments make it all the more essential that political decisions are made quickly and in a targeted manner. Another meeting of the negotiation teams is planned for the coming days to further advance the discussions about the budget and to make it more solution -oriented.