According to the budget speech by Minister of Finance Markus Marterbauer (Spö) it is clear: by 2029 we must save 54 billion euros. Without renovation, debts and shortage would never accept the dimensions. Many measures will only be defeated next year. Negotiations still have to be negotiated with countries and communities. An overview.
“If we want people to follow us when renovating the budget, then we must credibly reveal where we are starting and where we want to go.” Minister of Finance Marterbauer created his budget speech for the painful savings years that are imminent.
Previous pile of shards
Marterbauer took over from the previous government and launched the budget for two years in just six weeks. It is a budget “Sweat and Tears” so that we can save by 2029. A total of 54 billion euros must be saved in total.
Everyone has to pull the belt closer, nobody is spared. The minister also emphasizes in his speech. “The tax increases and costs will meet all people in Austria. We have tried to do the distribution of the redevelopment tax as fair as possible.”
New, unpleasant surprises
Most measures are already known, but Marterbauer also presented new, unpleasant surprises. So it will Climaticket more sensitive more expensive. The price of the standard ticket rises in two steps of EUR 1179 for 200 euros. By the E-card Will that Service costs From currently 13.80 to 25 increased.
In addition, pensioners of 1 January 2026 are no longer excluded from paying the service costs, they must pay this for the first time in November 2026 for the calendar year 2027. Minimum pensioners are excluded from this measure.
A savings package with countries and communities follows
This year 6.4 billion euros will be consolidated netto next year and 8.7 billion euros next year. As challenging as creating the budget, it will also be its implementation. His house will have to look at the fact that the requirements are also met, the minister said.
Negotiations with countries and municipalities will be a particularly high obstacle. Budget reductions are already priced here in the budget, but these must first be negotiated.
The deficit and debt status are frightening. Both the shortage and the debt rate are slowly falling despite massive savings packages. The renovation is delayed by the high interest payments. The deficit will only fall below three percent in 2028 and Austria will leave the EU deficiency procedure that starts in June or July.
Without austerity measures, the shortage would increase by 2026 to 5.9 percent of the economic output. “This is huge and we have never had that,” says Marterbauer.
Almost 100 percent debt percentage without austerity course
He also describes the debt speed as “Extraordinary”, which, despite austerity measures, will increase by 2027 to 87 percent of GDP and lends there until 2029. Only then will the actual debt reduction. Without consolidation we would reach almost one hundred percent (96.6) in 2029!
The minister does not hide the fact that the austerity measures will dampen the economy and that the high tax rate will continue to rise from 44.5 to 45.5 percent.
Savings make all ministries
All ministers must save. Especially bitter for the army: the upgrade plans are in danger, the goal budget of two percent of GDP is out of reach. Marterbauer took a list of the desire for savings among the officials. The salary diploma 2026 has already been decided and is therefore also shown in the budget. But people hope for savings in the following years. He describes the end of the previous government for two years as “unhappy”.
In 2026, the government will then aggravate the austerity course in the administration and the ministers must find more than 1.3 billion euros.
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.
