Tense budget situation

Wifo boss: savings plan for the entire government period

(Bild: APA/HANS KLAUS TECHT)

Gabriel Felbermayr, head of Wifo, estimates that 25 billion euros will be needed for consolidation over the next five years. A plan is therefore needed for the entire legislative period.

A double budget for the years 2025 and 2026 would not be sufficient in this respect, a plan for the entire government period is needed, Felbermayr said on Ö1's "Mittagsjournal" on Monday.

Working session on the economy on Tuesday
The economy will be discussed at a government working session on Tuesday, at which the economist has also been invited.

Another year of recession possible
The three-party coalition wants to save 6.3 billion euros in 2025 and 8.7 billion euros in 2026. At the same time, however, measures are also needed to stimulate the economy, according to Felbermayr. After all, 2025 could be another year of recession. We therefore need to explain now how we intend to improve the location in the coming years. "Better prospects should then also make it possible to invest more again," said the economist. He questioned whether projects such as retaining elements of the abolished educational leave will be affordable.

"It continues to go sideways"
On Monday, the OECD lowered its growth forecast for the eurozone for 2025 from 1.3 to 1.0 percent. It is "continuing to move sideways", said Felbermayr. There would only be a noticeable upturn with growth rates of 2 to 2.5 percent. New economic forecasts for the years 2025 and 2026 in Austria are published by the economic research institute Wifo and the Institute for Advanced Studies