Retiring minister – Brunner goes on the attack and defends the balance

Magnus Brunner had barely passed the entrance exam to become EU Commissioner when some gentlemen from the Industry Association (IV) gave him poor marks for his work as Finance Minister. A corresponding document was sent to the “Krone”.

Minister defends his record
The minister went on the attack in a background interview on Wednesday and tried to defend his record. His greatest achievement was undoubtedly the abolition of the Cold Progression, which had been called for for decades. The biggest point of criticism was the budget deficit, for which he was partly responsible.

Budget deficit almost one percent higher than expected
Shortly after the elections, Magnus Brunner increased the forecast from 2.9 to 3.3 percent of GDP, exceeding the Maastricht limit of three percent. Experts such as Christoph Badelt of the Budget Council have been predicting a higher budget deficit for some time. By the way, Badelt recently increased the forecast to 4.1 percent. You see: a very volatile area.

The ministry also argues this. Various flow data are required in the BMF. Such as Statistics Austria and WIFO. Without this, the ministry would not be able to make new forecasts. Earlier than shortly after the elections would not have been possible. Moreover, one thing is certain: the experts’ forecasts definitely reveal “uncertainties and downward revisions”, as the minister notes.

Money laundering regulations as a construction site?
The 2016 FATF (Financial Action Task Force – Money Laundering Regulations) recommendation was not sufficiently implemented in Austria. The situation in Austria will be re-examined at the end of 2024. This unpopular topic lingered in the ministry for years. The Money Laundering on the Financial Markets Act was recently sent with a review period of one (!) week. There is a risk of a deterioration of the rating. Brunner’s ministry points to complex developments, including the war in Ukraine. However, they are confident “that the parliamentary process will proceed satisfactorily in light of the ongoing FATF country review.”

Corona subsidies in tourism are still open
More than 1,000 tourism companies are still waiting for the promised Corona financing. This is due to ambiguities in the guidelines drawn up by the legislator. Another problem concerns the deadlines for submitting applications. Austria subsequently submitted proposals for solutions to both problems, which were adopted by the EU a year ago. Implementation has not yet taken place. According to the Ministry of Finance, this information is incorrect. All companies involved were contacted – the deadline for applications was October 31: “All applications are examined, so there is no problem here.”

Gambling concessions
With Ibiza, gambling also came to the attention of the general public (Strache in Ibiza: “Novomatic pays everyone”). In February 2024, the Ministry of Finance announced that it would award the concessions again. However, nothing concrete has happened here so far. This about such a sensitive subject. According to Brunner’s ministry, the Tax Authorities must prepare and implement the tender. The granting of a permit must be preceded by a public search for interested parties.

In addition to creating an independent gambling authority, the aim was to change the law and include new player protection measures. “Unfortunately, no agreement has been reached with the coalition partner.” This issue will also be left to the next Minister of Finance.