“Averting an EU deficit procedure at any price makes radical austerity necessary and will massively damage Austria’s economy,” warns SPÖ social spokesman and FSG boss Josef Muchitsch. “If the FPÖ and ÖVP want to avoid a so-called excessive deficit procedure (ÜD procedure) by all means, as announced, you will need at least 6.5 billion euros in additional revenue or spending cuts in 2025 alone. The scope for measures and investments that stimulate the economy is shrinking to zero,” fears Muchitsch. “Anyone who does this is damaging the economy and putting jobs at risk. If that is the plan of the ÖVP and FPÖ, then unemployment will continue to rise every month in 2025 – you will quickly get a foretaste of what will happen to the population under blue and black.” ****
It is not for nothing that economic researchers such as WIFO boss Felbermayr and IHS director Bonin also advocate consolidation within the framework of an EU deficit procedure. The economic researchers emphasized at the end of December that this offers more flexibility so that the economy is not stalled.
On the contrary – measures to stimulate the economy are now also needed. “In the government negotiations, the SPÖ, ÖVP and NEOS had actually already agreed on such an economic stimulus package,” explains Muchitsch, who was himself part of the negotiating team. At least 2 billion euros should be made available on a temporary basis to quickly stimulate the economy in 2025. Especially for temporary preferential depreciation for fixed investments and for the construction industry; also for bringing forward public investments, for example in building renovations or public transport.
“If the FPÖ and ÖVP now want to pursue a tough austerity course without a deficit procedure, then that will mean massive cuts in funding and investments of 6 to 8 billion euros as early as 2025. This means that the FPÖ and ÖVP are risking another year of recession – against the advice of all economic researchers in Austria with devastating consequences for the economy and increasing unemployment.” (Conclusion) ah/ls
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