With the failure of blue -black, the budget hangs back in the air. The budget renovation path registered according to Brussels is only a declaration of intent. Parliamentary resolutions are needed to implement the savings plans, and these are a long time free.
After the Norse End of Government Negotiations, the FPö and ÖVP will certainly not take joint resolutions in the National Council. New negotiations are needed for another majority. ÖVP, Spö and Neos, as is known, failed. They couldn’t agree on a budget renovation. Even a pact only between the ÖVP and Spö is not an easy enterprise. As is known, the Spös asks for rich taxes or a bank tax.
EU procedure very likely
Given this patient situation, Austria will soon be confronted with an EU deficiency procedure. This would mean that the EU committee will speak to the finances of Austria in the coming years and thus determine politics in the country.
FPö and ÖVP absolutely wanted to avoid this scenario and compile a savings budget in just three days, with cutbacks of 15 percent in all ministries (1.1 billion euros in savings), gap closures for taxes and reimbursements. A total of 3.18 billion less must be spent – among other things by removing the “climate monus”. For example, the free climat ticket for 18-year-olds or educational leave must also be saved.
This year alone, 6.3 billion euros less must be spent and the 2025 deficit must be reduced to less than three percent of GDP. In the next seven years, a total of more than 18 billion euros must be saved. The occurring excessive shortage procedure not only saves the Austria Republic of EU, but also on money on the financial markets. For example, the Fitch rating agency had recently deteriorated the position for Austria, because it assumed that shortage procedures were opened against Austria. A poor assessment increases the costs for the interest.
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.
