Debt and austerity measures

Carinthian state parliament adopts controversial budget

Shortly before Christmas, the provincial parliament discussed the budget.(Bild: Clara Milena Steiner)

The SPÖ and ÖVP defend savings in the budget for 2025 in the provincial parliament session, pointing out necessary steps. The opposition criticizes the growing mountain of debt and refuses to give its consent.

The difficult economic situation cast a large shadow over the state parliament session on Wednesday. "We are seeing dramatic framework conditions, the fat years are over," explained SPÖ parliamentary group chairman Herwig Seiser. Opinions were divided on who was responsible. "The poor economy didn't fall from the sky, it's all home-made," criticized FPÖ leader Erwin Angerer. In an urgent motion, the FP demanded a new electricity price brake.

The budget itself also attracted criticism - particularly because of the salary settlement. "Instead of 322, Carinthia will be almost 400 million euros in debt next year," said Angerer. ÖVP club leader Markus Malle criticized the "show politics" of some and made it clear with regard to the budget: "Not everything that the ÖVP wanted, not everything that the SPÖ wanted, has been achieved."

Mountain of debt and no lighthouses
The opposition was particularly disturbed by the growing mountain of debt. "We have to stop distributing money that we don't have," explained Team Carinthia leader Gerhard Köfer and Karl Markut made it clear: "The debt burden affects everyone." Another point of criticism from the opposition was the lack of major projects. "We will be spectators and not creators," fears Dietmar Rauter (FP) and Karl Markut misses investments in the future: "AI could be the most important employee of the future." The accusation that lighthouses are missing was contradicted by Gaby Schaunig, Vice Provincial Government: "It's about keeping life affordable for people."

Saving and reforming
The government plans to tackle the debt with savings. "We save where necessary, we invest where it makes sense," emphasizes Günther Leikam (SPÖ), Chairman of the Finance Committee. "We must not obstruct our room for maneuver." The focus would be on reviewing subsidies or structural reforms. "We will support those people who really need it," explains Gaby Schaunig with regard to housing subsidies. "We are sharpening up subsidies where they are urgently needed."

The final vote largely reflected the discussion: the governing parties and Team Kärnten voted in favor of the budget, while the FPÖ voted against it.