Savings plan is sufficient

EU proceedings against Austria averted

(Bild: Jauschowetz Christian)

The European Union will not initiate deficit proceedings against Austria. The measures presented by the blue-black coalition negotiators could be sufficient to bring the deficit below the Maastricht limit of three percent, according to Brussels.

The responsible EU Commissioner Valdis Dombrovskis communicated the good news in a letter to Finance Minister Gunter Mayr.

Mayr: "Efforts have paid off"
Mayr was delighted: "The fact that we have managed to convince the Commission of this is very pleasing and shows that our efforts have paid off." He met with Dombrovskis on Tuesday to present him with the measures with which Austria intends to save the necessary 6.39 billion in 2025.

Finance Minister Gunter Mayr and EU Commissioner Valdis Dombrovskis at a meeting in Brussels

(Bild: European Commission)

Stocker: "Good news for Austria"
ÖVP leader Christian Stocker is also pleased with this outcome: "The EU has assessed our package of measures to consolidate the Austrian budget and has come to the conclusion that it is plausible and effective." This is "good news for Austria and for the people in our country", said Stocker. 

"The preparatory work of the past months has paid off.

Bundesparteiobmann Christian Stocker

Bild: APA/HELMUT FOHRINGER

Savings package was presented on Thursday
Yesterday, Thursday, these were also presented in Austria. Savings are to be made, for example, by abolishing the climate bonus and educational leave, in the health sector, in pensions and by increasing fees. This was met with criticism from the future opposition and numerous NGOs.

The question of whether a deficit procedure should be avoided at all had already divided the ÖVP, SPÖ and NEOS. The Reds would have been in favor of adopting such a procedure. Some experts, including Wifo head Gabriel Felbermayr and IHS director Holger Bonin, had also spoken out in favor of a procedure instead of a radical austerity course. A deficit procedure generally offers more flexibility in the event of exceptional economic or financial crises.

Budget review in spring
The Commission will reassess Austria's budget situation in the spring. This will be based on the budget outturn for 2024 and the measures presented by the Austrian authorities in the draft budget and the medium-term fiscal and structural plan, which are expected to be submitted to the Commission by the end of April.