Blue-Black Savings Package: These Are the Areas Where Cuts Will Be Made

The blue-black coalition negotiators presented a comprehensive austerity package on Thursday, with which they want to avoid a deficit procedure from the EU. The biggest chunk of the 6.4 billion project is the abolition of the climate bonus, which is expected to bring in almost two billion.

Other large items are the 1.1 billion that the ministries are supposed to save, as well as higher dividends from partially state-owned companies amounting to 430 million euros.

The Planned Austerity Measures in Detail

Below is a selection of the planned austerity measures by FPÖ and ÖVP:

MINISTRIES

The ministries of the future federal government are supposed to save 1.1 billion, which corresponds to 15 percent of their expenses. Where to start is to be left up to the departments themselves. Examples mentioned include savings on advertisements as well as the number of work contracts and employees in the cabinets.

TAXES

175 million are to be saved by prematurely dropping the (zero) tax privilege for the procurement of photovoltaic modules, not just at the end of the year. Here, the normal VAT rate of 20 percent will be applied again.

The continuation of the energy crisis contribution from the energy industry is expected to bring in 100 million.

65 million is expected through the valorisation of federal fees. This is likely to make things like passports or driver's licenses significantly more expensive.

The introduction of a motor-related insurance tax for electric cars is also expected to bring in 65 million.

50 million is expected from an expansion of the digital tax: services such as the provision of online platforms or the sale of user data should be included.

50 million is also hoped to be gained from closing a loophole in the real estate transfer tax concerning share deals.

50 million is intended to be raised through the tobacco tax, on the one hand by including "tobacco for heating", and on the other hand by freezing the price component.

35 million is expected to come from yet undefined measures in the gambling sector.

A fraud prevention law should help save 10 million.

2.5 million is expected to be raised by halving the mileage allowance for motorcycles and quartering it for bicycles.

DIVIDENDS

950 million is expected to come from higher dividends of partially state-owned companies and from not exhausting subsidies such as craftsman bonus and investment premium. 430 million is planned for the former area, 520 for the latter.

SUBSIDY RATE

1.96 billion is expected to be raised by abolishing the climate bonus while maintaining the CO2 tax.

495 million in savings are planned for environmental subsidies, such as by significantly limiting the subsidy for boiler replacement.

The abolition of educational leave is expected to bring in 350 million.

150 million is expected to be gained from the "redimensioning" of broadband funding.

The FPÖ and ÖVP want to save 120 million by abolishing the climate ticket for 18-year-olds.

30 million in savings are planned for the funding line for electric buses and commercial vehicles as well as e-infrastructure.

SOCIAL

320 million is reserved for the health insurance sector. How savings will be made here is still the subject of negotiations. It seems possible that the health insurance contributions of pensioners will be aligned with those of active workers.

150 million is expected to be saved in the pension sector by keeping people in work longer through various measures.

The largely abolition of the possibility to earn additional income to unemployment benefit or emergency aid is expected to keep 82.5 million in the state treasury.

Further savings are announced among others in the promotion of NGOs, in sports as well as for cultural activities and for the forest fund.

(APA/Red)

This article has been automatically translated, read the original article here.