New deficit figures are causing a stir in politics. Finance Minister Magnus Brunner defends himself against the attacks. The “Krone” does the fact checking. It is certain that cuts will have to be made in the coming years. Brunner’s successor is not to be envied.
Beate Meinl-Reisinger furious: “Now there is fire on the roof,” said the head of Neos after WIFO and IHS presented the corrected deficit figures. Economic forecasts have fallen sharply from June and see the second straight year of recession. “The longest recession since 1946,” said WIFO boss Gabriel Felbermayr.
There was also sharp criticism of the country’s financial situation from the FPÖ and SPÖ. Next hammer: The institutes raised the budget deficit forecast to 3.7 and 3.5 percent of GDP. That is well above the Maastricht border. And above is the information from the Ministry of Finance. Only shortly after the elections did Minister Magnus Brunner increase his prediction from 2.9 to 3.3 percent.
There was immediate fierce criticism of the country’s financial situation from the FPÖ and SPÖ. Meinl-Reisinger now even claims that Brunner deliberately lied to the population about the situation before the elections. Explosive: The leader of the Pink Party wants to form a government with the Chancellor’s Party. Whether such attacks are useful remains to be seen.
The Minister of Finance is on the right, but…
One thing is certain: the figures could not have been obtained earlier; it is a normal procedure. “The timing of transfers has been regulated uniformly throughout the EU for years and always falls within the same period,” the Ministry of Finance says. Current figures could not be available before the elections.
In general, the ministry points out uncertainty in the forecasts: “Revisions are normal. Like that of WIFO recently for the shortage.” The current forecast is mainly due to the crises of recent years and the consequences of the flood disaster, which are currently difficult to estimate, but also to measures taken such as, for example. increasing the climate bonus.
Nevertheless, several warnings from well-known economists were ignored. For example, from the head of the Budget Council, Christoph Badelt, who predicted in April that the Maastricht criteria would be missed and a deficit of 3.4 percent. The National Bank and WIFO followed in June. The government viewed this as relaxed and had no cause for concern. During the election campaign, little or nothing was heard about possible austerity measures. Except the Neos.
One thing is certain: now we have to save. In billions. Secretary of the Treasury – probably the most brutal political job at the moment. Magnus Brunner will be spared this. He will become EU Commissioner. Beate Meinl-Reisinger claimed the Ministry of Finance for her party in July. When we asked about it yesterday, a spokesperson said: “We are not talking about departments. It is clear that tough reforms are needed. And that we can do that too.”
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.
