Spending brake is coming

Automatically saved draft

(Bild: APA/Roland Schlager)

The FPÖ and ÖVP presented their savings plans in detail on Thursday. The so-called stability package is primarily based on a "smoothing out" of green prestige projects, leaner ministries and a reduction in funding quotas. The unemployed are also being targeted by the blue-black government - below you will find all the points in detail.

The red pencil is being applied in Austria! ÖVP parliamentary group chairman August Wöginger and FPÖ finance spokesman Hubert Fuchs were sent ahead to present the budget roadmap of a potential blue-black coalition for this year. The "Krone" was able to take a look at the "stability package" in advance.

The most important points at a glance:

• Almost 6.4 billion euros are to be saved in 2025.
• The biggest chunk is to come from the reduction of production quotas. That is just under 3.2 billion euros. As already indicated, the FPÖ and ÖVP want to abolish the climate bonus (savings of 1.96 billion euros) and educational leave (savings of 350 million euros).
• 1.1 billion euros are to be saved in the administration. Ministries will be obliged to make a so-called stability contribution. It is up to the respective ministry to decide where savings are to be made.15 percent of expenditure is to be cut. 

• The FPÖ and ÖVP want to save 120 million by abolishing the free climate ticket for 18-year-olds

• The digital tax - which mostly affects international internet companies - is to be expanded and lead to greater fairness in the tax system. This is expected to generate 50 million euros.
• There will also be higher taxes in the areas of gambling and tobacco. No specific measures have yet been announced for gambling, but these are expected to generate 35 million euros. The aim is to raise 50 million more from tobacco tax - on the one hand by including "tobacco for heating" and on the other by freezing the price component.

• 50 million is also hoped to be raised by closing a loophole in the real estate transfer tax on share deals.

• Tax fraud is to be consistently combated in future. For this reason, a comprehensive anti-fraud package is to be drawn up at expert level. This should help save ten million euros. In addition, tax loopholes in land acquisition are to be closed. 
• Additional income opportunities for the unemployed are to be restricted. The blue-black coalition is hoping to make savings of 82.5 million euros here. In concrete terms, this means that low incomes are to be made more difficult.
• Tax benefits (motor-related insurance tax) for e-cars are to be abolished. The abolition of this privilege alone is expected to generate around 65 million euros in 2025. The mileage allowance for bicycles and motorcycles is also to be cut (savings of 2.5 million euros). For cars, the full amount would "naturally" remain in place, as Fuchs emphasized. The exemption of photovoltaic systems from VAT is also to be abolished earlier than planned. This should save 175 million euros. 
• The valorization of federal fees, which has not been increased since 2020, will be made up for. In plain language, this means that registration certificates and driving licenses, for example, will become significantly more expensive. The aim is to save 65 million euros. 
• 100 million is to come from the continuation of the energy crisis contribution from the energy industry.
• 150 million euros are to be generated by increasing the actual retirement age for pensions . This should generate 150 million euros. Flexible models are also being discussed. However, pension accounts are not to be cut in 2025.

• 950 million is to come from higher dividends from partly state-owned companies and from the non-utilization of subsidies such as the craftsmen's bonus and investment premium. 430 million is planned for the former and 520 million for the latter.

• 495 million in savings are planned for environmental subsidies, for example by severely restricting subsidies for boiler replacements.

• 150 million is to be gained from the "redimensioning" of broadband subsidies.

• 30 million in savings are planned for the subsidy scheme for e-buses and e-commercial vehicles as well as e-infrastructure.

Green policy is being "smoothed out"
Fuchs emphasized that the extent of the debt was not known for a long time: "We did not cause this shambles, but it is our responsibility to clear it up." The Freedom Party would like to keep its election promises, only the "timeline" would have shifted backwards.

Without austerity measures, there would have been a threat of foreign domination by Brussels. In addition, a further debt course would have meant new taxes and pension cuts, which in turn could have triggered social unrest.

Wöginger and Fuchs (right) on the way to the press conference

(Bild: APA/Roland Schlager)

According to Wöginger, Green prestige projects should be "smoothed out", but not completely abolished. The aim here is to achieve a "normal level". Together, the aim is to prevent a deficit procedure by the EU. "We have to get below a three percent budget deficit for this year." According to Wöginger, the headlines of the package are a lean state, combing through excessive subsidies and maintaining the health and social system.