Due to Budgetloch – Austria, a reform of federalism now needs

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The tense financial situation should be conceived as an opportunity to tackle real structural reforms. You can expect that after the top between the federal government, the municipalities and the countries, says Wifo budget expert Margit Schratzenstaller in an interview with the “Krone”.

On Wednesday evening, the political terraces of the country announced unpleasant things after a crisis stop in the Chancellery. Chancellor and government, country. And municipal representatives tried to panic to panic to prevent the recently known explosion for budget deficit. They argued in common to master the difficult situation. ÖVP Chancellor Christian Stocker: “You need further efforts.” Everyone agrees.

The largest saving potential is in structural reforms and in the social area. “A major reform of federalism would be the central lever to increase a potential for efficiency in the medium term,” says Wifo budget expert Schatzenstamaller. In the case of such a reform, all important areas must be put on the table, then it must be considered “how to spread them as rational as possible, if possible without double traces and overlaps.” In essence, this is about hospitals, nursery schools and geriatric care.

In addition to the tasks, the subject of fiscal autonomy for countries and communities must also be concerned. “A hot candidate here is the real estate tax. But even at a country level you can consider whether you don’t need more tax autonomy.” That would be the basis for strengthening responsibility and establishing the connection between tasks, expenses and responsibility. The Governor of Salzburg has indicated in this direction.

In the short term, the budgetary is no more within than what the government has already reported to Brussels, Schatzenstaller confirms the arguments line of Finance Minister Markus Marterbauer. It would be difficult to “set more substantially or at least as much more that you can avoid the shortage procedure”. It is a challenge to implement the 6.4 billion this year. “We already have at the beginning of April,” said Schatzenstaller. It becomes exciting what should be saved in the ministries. We will discover the budget speech in the middle of the day.

Only tax increases possible in the short term
The only way to do something in the short term would be to a relatively large extent tax increases. “Of course this is not very smart considering the economic situation.” In general you have to get away with it: “What can you do in the short term, because the scope is relatively limited”.

Self -treatment in discussion
President President Presl of the Association Community recently argued for a debate on the own risks to better determine how certain public services are used. For example, one has to think about outpatient costs or ambulance contributions if they are not an emergency. He also quoted the use of free Kindergarten on the Rand, although parents could easily get the children earlier, or registrations for free summer support, which is not used and where the staff has free service.

The time for large, painful reforms is ideal, not just because of the budget pressure. After the election of Vienna on April 27 there is a long, election -free time. The next major elections are the state elections in Upper Austria and Tyrol 2027.

Source: Krone

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