New Budget, Old Worries: Is the Next Austerity Package Coming Soon?

Finance Minister Markus Marterbauer (SPÖ) sees the federal budget on track. He is also encouraged by the "slow economic recovery," which "naturally" supports the efforts, as he explained on Saturday in the Ö1 "Journal zu Gast": "For two years, there was the impression that everything was going downhill and everything was collapsing in Austria." Now there is "light at the end of the tunnel." However, he does not rule out a new austerity package. A subsidy cut is "firmly agreed."

Marterbauer Foresees Subsidy Cuts

This is supposed to "contribute" to the budgets for 2027 and 2028. The five billion in additional consolidation needs by 2028, as assumed by the Fiscal Council, Marterbauer considers "somewhat exaggerated from today's perspective." For the 2027 budget, it is "crucial" how employment develops. "If employment increases rapidly, then we have sharply rising income tax revenues, social security contributions, then we find it much easier in the budget," said Marterbauer: "If that is not the case, then we find it more difficult." He wants to first wait for the "secured data basis" and then create the budget based on it.

Helpful for this will be the data transparency negotiated with the states in the Stability Pact, emphasized Marterbauer. It has been agreed that data deliveries will take place continuously, "so monthly cash data will be delivered." The corresponding management regulation should "come immediately after the holidays," explained the Finance Minister: "We have it essentially ready." It not only records a "regular" exchange, but also "that we discuss these data."

Criticism from FPÖ and Greens

The freedom party's budget spokesperson Arnold Schiefer sees the federal government on the "wrong track" regarding budget policy, as the country's leading experts would describe it as "not ambitious." Schiefer does not appreciate that Marterbauer wants to wait for the next forecasts, as it would be "far too late" to create a new budget. Marterbauer is generally engaging in "cherry picking" in the forecasting landscape, as the finance minister selects from the many forecasts what fits his concept, according to Schiefer. From the FPÖ's perspective, the asylum sector and pointless NGOs are suitable for cuts in subsidies.

The Greens, on the other hand, prefer cuts in "climate-damaging subsidies," as experts have "long agreed" that these need to be abolished, argues the Green budget spokesperson Jakob Schwarz. In this way, not only could billions be generated for the budget and climate goals achieved, but more social justice could also be established, for example, with the company car privilege.

Knill with Criticism of Marterbauer and the Government

The president of the Federation of Austrian Industries, Georg Knill, does not share Marterbauer's optimism. The country's financial situation is "catastrophic," as he emphasized to the "Kurier" (Sunday edition). The national deficit paralyzes and prevents investments, according to Knill: "We hear daily that because the deficit is so high, we cannot do this or that." The finance minister's "blanket excuse" for many issues is that there is no financial leeway, the IV president was quoted as saying: "Perhaps one should intervene in the structures to create this leeway, because otherwise we cement ourselves in stagnation."

He also does not hold back with criticism of the government as a whole: Although they succeeded in preventing FPÖ leader Herbert Kickl, Knill said: "The government has not yet succeeded in explaining what they plan to do with the country by 2029." Currently, only ideologies are reflected. "When the finance minister says a high public spending ratio does not bother him at all, it makes me extremely nervous as an entrepreneur," criticized Knill.

(APA/Red)

This article has been automatically translated, read the original article here.