Austria is assessed for the second year in a row. This economic downturn and the turquoise green government’s unbridled spending will bring us an austerity package in the coming term of office. The “Krone” has looked at what will become the victim of the savings pen.
The budget gap of at least 16.5 billion euros this year alone and the difficult economic situation are also major topics in Federal President Alexander Van der Bellen’s conversations with party leaders.
Pink frontwoman Beate Meinl-Reisinger confirmed this on Tuesday after her visit to the Hofburg. The NEOS was the only party that said during the election campaign that an austerity package would be needed after the elections. They remain in this position. Meinl-Reisinger sees all parties responsible for this, because many of the reforms that she believes are necessary require a two-thirds majority in parliament.
Pinke put together a savings package of 20 billion
The NEOS would enter into a possible ‘sweet coalition’ with the ÖVP and SPÖ with an already completed savings package of 20 billion euros. Five billion must be saved on subsidies, 2.5 billion on federalism and administration, 4.5 billion on the pension system, 3.5 billion on health care, another 3.5 billion through the ‘debt and expenditure brake’ and a billion on interest.
We will have to make cuts everywhere, says Christoph Badelt, chairman of the Budget Council, in an interview with the “Krone”. “We have no choice but to go through all the expenditure categories in detail and see where we can save in each category.” It is important that this does not harm the economy. The climate bonus and climate-damaging subsidies such as diesel and company car privileges are mentioned as possible elimination items. This will have to be negotiated in the next government.
“We need to renovate the turquoise green mess”
Regardless of the constellation, this will certainly start with a cash collapse. “That will be the first step. The second step will be: how do we get out of this crisis? Thirdly, we have to think about cleaning up the mess caused by turquoise green,” SPÖ finance spokesperson Jan Krainer told “Krone”.
The outgoing government has plunged the country into crisis with its ‘free cost’ approach. Whenever an agreement could not be reached, the problems were covered up with money; the counter-financing was set aside. “It’s actually like a bad movie. There has actually never been such dishonesty. On the contrary. “The budget is usually very conservative,” Krainer said.
Despite all the warnings from experts, Turquoise-Green set the deficit too low and now had to adjust it upwards from 2.9 to 3.3 percent of GDP. But this number will also not be sustainable, Badelt predicts. “It was very important for them that they could say that it would remain below 3 percent (Maastricht border, note). That was not sustainable at the time. And now it is certainly not sustainable.” He does not know whether it will be minus four percent next year, but in any case “more than 3.5 percent, so to speak,” says Badelt.
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.
