The focus of the meeting of EU Economy and Finance Ministers on Tuesday in Luxembourg will be on the economic situation in Europe and associated responses, the economic consequences of Russia’s war of aggression in Ukraine and climate finance. Before the meeting, Finance Minister Magnus Brunner (ÖVP) emphasized that Austria was also affected by the deterioration of the economy in Europe, which also had an impact on the budget deficit.
“We are feeling the economic decline across Europe,” said the current finance minister, who will soon move to Brussels as the designated EU commissioner for migration. According to Brunner, the fact that the Austrian budget deficit was only revised upwards after the National Council elections is due to the date of publication of the forecasts, which are “announced when they are announced, always in spring and autumn” . Austria had previously presented its figures to the European Commission and no excessive deficit procedure had been opened.
Second recession year in a row
Economic researchers at Wifo and IHS have revised their economic forecast significantly downwards from the June estimate on October 4 and now expect the second year of recession in a row. In addition, the forecast for the government deficit in 2024 was significantly increased to 3.7 to 3.5 percent of GDP. The deficit is therefore above the EU debt rules (Maastricht criteria) of 3 percent. In June, Wifo and IHS expected a budget balance in 2024 of -3.2 percent and -3.0 percent respectively.
“Figures need to be revised”
According to Brunner, the new forecast is partly due to the consequences of the flood disaster and the increase in the climate bonus: “The figures had to be revised. We had to change them based on the predictions. The economic situation in Europe has an impact on our budgets.”
The European Commission’s requirement means that Statistics Austria transmits its data to the EU statistical agency Eurostat in the autumn, according to a statement from the BMF: “For this purpose, the BMF provides up-to-date forecasts on deficit and debt levels for 2024 to Statistics Austria and have this published on the BMF homepage as part of the transparency offensive. The timing of these transfers has been regulated uniformly throughout the EU for years and always falls within the same period.”
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.
