The EU committee has now officially recommended the start of a shortage procedure against Austria. The procedure at a meeting of the Minister of Economic Affairs and Finance on 8 July must ultimately be decided. However, the budget plan with red white red is positively assessed.
The reason for the shortage procedure, as reported, with its budget deficit of 4.7 percent of GDP last year and the planned 4.5 percent this year is clearly above the permitted limit of three percent of the economic output of the so -called Maastricht criteria of the EU. At the beginning of June, the EU committee found an excessive shortage in its spring package for the so-called European Semester for Austria and announced the recommendation of a procedure.
According to the Committee proposed by the Committee, Austria will be established until 15 October 2025 a deadline to become active and to present the necessary measures. “According to this, Austria should report at least every six months about the progress of this recommendation, in the spring as part of the annual progress report and in the fall in the draft budget until the excessive shortage has been corrected,” it continues. And: “Austria must therefore eliminate the excessive shortage by 2028.”
In 2028 the deficit must fall to less than three percent
“The recommendations for the Austria Fiscal Structure Plan, presented by the EU committee, meet expectations and at the same time it appears that we have taken the right measures,” said Finance Minister Markus Marterbauer (Spö) on Tuesday. “First and foremost, the documents say that the tax structure plan, which we reported to Brussels on 13 May, corresponds to the EU rules, and that the recently decided double budget is also in accordance with the rules.” Both the federal government and Brussels are convinced that the ambitious goal of reducing the outpette deficiency in 2028 under three percent.
According to the EU debt rules, the debts of a country should not be more than 60 percent of gross domestic product (GDP). The annual budget deficit should also not exceed three percent of GDP. With the reform, countries that do not meet these criteria are more flexibility when achieving these goals. However, governments work out the measures, so it is by no means a dictation of the EU committee.
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.
