The European Union will not initiate excessive deficit procedures against Austria. According to Brussels, the measures taken by the blue-black coalition negotiators could be sufficient to bring the deficit below the Maastricht limit of three percent.
The responsible EU Commissioner, Valdis Dombrovskis, announced the good news in a letter to Finance Minister Gunter Mayr.
Mayr: “Efforts have yielded results”
Mayr was pleased: “The fact that we have managed to convince the Commission of this is very gratifying and shows that our efforts have paid off.” He was with Dombrovskis on Tuesday to discuss the measures with which Austria wants to save the necessary approximately 6.39 billion. by 2025.
The austerity package was presented on Thursday
Yesterday, Thursday, these were also presented in Austria. The aim is to realize savings, for example by abolishing the climate bonus and educational leave, in health care, on pensions and by increasing fees. There was criticism from the future opposition and numerous NGOs.
The question of whether a deficit procedure should be avoided at all previously divided the ÖVP, SPÖ and NEOS. The Reds would have been in favor of such a procedure. Some experts, including Wifo boss Gabriel Felbermayr and IHS director Holger Bonin, also spoke out in favor of a procedure instead of radical austerity measures. An excessive deficit procedure generally offers more flexibility when exceptional economic or financial crises occur.
Spring budget revision
The committee will reassess Austria’s budgetary situation in the spring. This will be based on the 2024 budget outcome and on the measures presented by the Austrian authorities in the draft budget and the medium-term fiscal structure plan, which are expected to be submitted to the Commission at the end of April.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
