Now live – budget speech: Brunner’s return to the Maastricht zone

The Austrian economy recovered better from the pandemic than many other EU countries. But you cannot isolate yourself from global developments, Brunner emphasizes in his speech to parliament and lists: rising interest rates, the energy crisis, the security situation and demographic developments. To maintain prosperity, you have to adapt or ‘set the sails correctly’. Especially since the latest economic data only recently had to be ‘downgraded’.

The ‘future budget’, as the ÖVP minister describes it, includes income of 102.6 billion euros and expenditure of 123.5 billion euros. That results in a minus of 20.9 billion. A deficit of 2.7 percent is assumed for 2024, 2.8 percent in 2025 and 2026 and 2.7 percent again in 2027.

Spending on pensions and health care is rising sharply. Brunner admitted in advance that any increase in expenditure causes him some concern, but he also referred to demographic developments. There is more money in the field of healthcare, but at the same time we also ensure that reforms are implemented. And in the pension sector we will also look at how incentives can be provided to keep people working longer. Brunner also defended the economic stimulus package for the construction sector: the construction sector is in a critical situation and therefore a “certain boost” is necessary.

Only one surplus in 50 years
The economically liberal think tank Agenda Austria is offended by the fact that Austria has only achieved a budget surplus once in the past fifty years (see graph above). Scandinavian countries such as Sweden or Denmark, on the other hand, regularly spend less money than they earn.