In order to avert EU deficit proceedings against Austria, Finance Minister Gunter Mayr sent planned austerity measures to the European Commission on January 13. The measures had been proposed by FPÖ and ÖVP, which are currently in government negotiations. A deficit procedure against Austria due to exceeding the 3%deficit wave is thus averted for the time being. The next review of the Commission should be expected for May or June 2025.
Im EU under Committee of the National Council at the request of the SPÖ, they were transmitted to the EU today Austerity for debate. They include a package of measures of 6.39 billion ꞓ for 2025. For example, 1.1 billion ꞓ should be saved as the “Stability contribution of the Federal Ministries”, for example in the event of factual expenditure of the departments. A total of 3.18 billion ꞓ less should be spent – among other things by deleting the “Klimabonus”. For example, the free climaticket for 18-year-olds or educational leave should also be saved.
SPÖ, NEOS and GREEN brought a total of four applications in the committee. The Social Democrats: With a motion for a resolution, a bank levy as an income -side measure for budget renovation instead of budget cuts that would make all Austrians: inside. However, the EU subcommittee rejected the votes from FPÖ and ÖVP to send the application to the plenum, which must be determined separately in the EU subcommittee. Therefore, the SPÖ decision-making application in the committee did not come to the vote.
The NEOs were once again campaigning for structural reforms. The finance minister may present a comprehensive and long-term reform plan in the next talks with the European Commission and with regard to compliance with the EU fiscal rules, according to the NEOS. The financial stability of Austria can only be secured with such a plan.
The Greens criticized the “radical” savings plans and indicate the area of competence and responsibility of parliament in their application, especially since negotiations in the National Council on the budget consolidation would only follow. In addition, information from the minister to the EU is needed that, for example, ecological and digital transformation should be a top priority. According to the Greens, in the event of an “economic consolidation” with lower savings, less than 6.3 billion ꞓ The initiation of EU deficit procedure – with lower savings – could not be excluded.
Allegation of late or lack of transmission to the parliament
In a fourth, joint application by SPÖ, NEOS and GRÜNEN it is said that the Austrian Parliament only has been sent to the Austrian Parliament on the savings plans after transmission and discussion at European level, on January 17th, or the Commission’s answer be. The three factions criticized the fact that it was otherwise open to the public, the finance minister did not remove his obligation to transmit to the parliament in the context of EU projects. In their application, they therefore insist that the Minister of Finance has comprehensively and immediately, at least before the negotiation and coordination of EU projects in the European bodies, to be informed of Parliament. The parliamentary participation rights should also be protected on the question of initiating deficit procedures.
These latter three applications for comment, which can be formally made in EU committees, remained in the minority against the votes of FPÖ and ÖVP. In addition to the NEOS, the Greens also spoke out for the Neos application. The SPÖ also voted for the Greens’ application.
Austerity measures as a “declaration of intent”
SPÖ and NEOS would also at least know many of the proposed measures from the previous government negotiations, said Finance Minister Mayr. In his view, it is an economic -friendly package with a focus on the output side. The tax area would only affect 14 % of the measures, especially since Austria already has a very high tax rate. Half of the package unfolds on savings for grants, which would only reduce the EU average in grants. The entire process with the European Commission was presented on the website of the Ministry of Finance, Mayr said of criticism of a lack of information. The procedure to avert damage from the republic is constitutionally covered. In addition, the finance minister was convinced that no EU member state would voluntarily go into a deficit procedure, and pointed out rating agencies and the autonomy of the Member State. In the current turning of the deficit procedure, he sees a success, which also takes uncertainty from the market.
In the debate, similar to MPs from FPÖ and ÖVP, Mayr explained that the transmitted savings package was a declaration of intent. If individuals of the measures are not implemented, they should be replaced by equivalent measures, the minister said.
There was also a fundamental discussion in the committee whether the document based on the agenda was an EU project.
FPÖ: Damage was averted by the Republic
From the point of view of Axel Kassegger (FPÖ), an EU deficit procedure from the Republic would massively harm. With the package of measures, it has now been made to avert this damage. In addition, the FPÖ is not responsible for the “huge debt mountain”, but the previous federal government, he emphasized. Austria must keep the full ability to act, said Barbara Kolm (FPÖ). It was urgently needed to avert the damage from the citizens. In addition, a deficit procedure would have massive disadvantages for the location. Arnold Schiefer (FPÖ) sees the first important step that the deficit procedure could now be stopped. It is important to widely discussed the measures in parliament and, in the second step, to create a new budget by a new federal government. At the moment, all funding programs would still run, said Schiefer. He would like to thank the minister that there is now a “breathing space” until the budget position.
ÖVP: Averting the deficit procedure important
Andreas Hanger (ÖVP) expressed his full support to avert the deficit procedure. In his view, this would have far -reaching consequences for the capital market. What has been available so far is a declaration of intent and still far from legistics – everyone in parliament is invited to bring in their suggestions. Georg Strasser (ÖVP) provides a “reasonable redimation”. The European climate goals would remain important with the focus on balance.
SPÖ for banking, deficit procedure continues to see open
From the perspective of Kai Jan Krainer (SPÖ), the question of future deficit procedure is still open, especially since the basis for this will be the budget of 2024. He therefore emphatically asked Finance Minister Mayr, among other things, about the total state deficit for 2024 including the figures of social security, states and communities and was “disappointed” from the missing answers. For Krainer, bank levy would also be the most economic measure. Pia Maria Wiinger (SPÖ) criticized that Parliament had only been informed about the process of turning the deficit procedure afterwards. In addition, a lot has already been revised from the list of austerity measures in the short time, for example on the project with administrative school staff or the savings of 270 million ꞓ in health insurance contributions.
NEOS for reforms against structural deficits
Karin Doppelbauer (NEOS) currently sees a phase of the course for the Republic, so it is important to integrate the parliament full in terms of content. A deficit procedure must not only be prevented now, but also in the future. It is important to finally tackle the structural deficits that have existed for more than five years. In their view, a pension reform is needed to bring the effective retirement age up, but also a health and nursing reform as well as a federalism reform.
Greens: Business should not be choked
From the point of view of Jakob Schwarz (Greens), the economy should not be choked up when consolidating. In the current phase to intervene so massively, he is a high risk. He considers the cuts in climate funding to be bad for the climate, but also for future generations and for the economy. He pointed out that the EU should also be reported outside the deficit procedure. It is “not unlikely” that you will later fall into the deficit procedure later, said Schwarz.
Mayr goes out of deficit of 19.1 billion ꞓ
As for the overall budget situation, the finance minister is currently assuming a deficit of 19.1 billion ꞓ for 2024. This is better than estimated by 1.7 billion ꞓ, according to Mayr. In the case of the Maastricht deficit, the assessment is 3.5 % of the gross domestic product (GDP). Regarding the planned 6.39 billion ꞓ On savings for 2025 this is a “giant package”. Smaller planned savings from it, such as about 270 million ꞓ In health insurance contributions, the minister referred to the “placeholder”, which could also be replaced by other measures. All in all, the EU has been seen that the proposed measures were also gentle on the economy as possible. (Conclusion EU subcommittee) MBU