Finance Minister Marterbauer Against Badmouthing Austria as a Business Location

The latest economic forecasts indicate slight growth this year and next. "This is not a fireworks display, but it is slightly going upwards," explained Finance Minister Markus Marterbauer (SPÖ). There is no evidence of an industrial exodus. The statistics would refute this. At the same time, it is risky to address such a development, as it could trigger a self-fulfilling prophecy.

Finance Minister Marterbauer: Budget Gap Significantly Lower Thanks to Measures

The extremely difficult budget situation would have been much more dramatic without the measures of the government in office since March, consisting of ÖVP, SPÖ, and NEOS, according to Marterbauer. The deficit was threatening to steer towards 5.8 percent of the gross domestic product (GDP) for 2025, according to the minister. Now, it is expected to be slightly more than 4 percent. The goal is to return to below three percent by 2028, as required by the EU. The budget gap should be mitigated, among other things, by combating tax fraud and changes in subsidies. Additionally, from the beginning of 2026, working beyond the retirement age should become more attractive. Then, only a flat tax of 25 percent should be levied on additional earnings to the pension. Details are still being worked out, according to the minister.

(APA/Red)

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