There will soon be a gap in the Ministry of Finance. This will not only affect the budget, but the minister will also fall short. Magnus Brunner (ÖVP) will probably become EU Commissioner in early November. It may take some time before a new government is formed. During this time, a temporary minister is needed.
Legally, there are three possibilities. A new minister can be sworn in, another department head can take over Brunner’s official duties, or a civil servant can be entrusted with them. The decision lies with Chancellor Karl Nehammer (ÖVP). According to reports, the most likely option is to entrust official matters to a civil servant. This could also help the next government, whatever form it takes, in preparing the budget.
A huge budget gap awaits the next government
Traditionally, a cash rollover takes place at the start of a new legislative period. Here, however, the turquoise-green government and Finance Minister Brunner have not left their successors with the best conditions. The Budget Council has forecast a budget deficit of 3.4 percent of GDP for 2024. That would be a financing deficit well above the Maastricht limit of three percent and above the minus of less than three percent planned by Brunner. Experts from IHS, Wifo and the Fiscal Council have already advocated short-term austerity packages worth billions. With the exception of NEOS, all other parties rule this out, against their better judgment, in view of the upcoming elections.
ÖVP Minister Brunner and Minister of Economic Affairs Martin Kocher presented their plans for savings and efficiency this weekend. Not least because of warnings from experts that the budget deficit could get out of hand. According to the “Austria Plan”, the ÖVP wants to achieve at least 14.5 billion by renegotiating all budget items, cutting subsidies, increasing efficiency and more “performance-oriented” social benefits.
Coalition negotiations can take a long time
As long as there is no new budget, the so-called “twelfth rule” will continue to exist, whereby one twelfth of the previous year’s budget is released month after month. Such provisional arrangements have existed several times before, the only problem is that no new projects or plans can be implemented. In long-term government negotiations – and this time it is to be expected – this means a standstill. The longest negotiations took place in 1999, when Black-Blue I was formed under Chancellor Wolfgang Schüssel. These negotiations lasted four months.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
