Schellhorn wants more budget contribution from states and municipalities

NEOS State Secretary Josef Schellhorn wants to have "a clear word" with the states and municipalities for a stronger contribution to budget consolidation. As he explained on Wednesday in the press foyer after the Council of Ministers, reforms are needed from them. Regarding the issue of an EU deficit procedure, he said it is in the hands of the EU finance ministers. Austria can only submit an improved reform proposal.
Haslauer ready for "thoughtful and long-term sustainable solutions"
The situation is "bitterly serious," more serious than thought two weeks ago. "We need to talk again with states and municipalities," said Schellhorn. It is now time for major reforms, to which the chairman of the Conference of Provincial Governors, Wilfried Haslauer (ÖVP), has also committed. The person addressed confirmed on Wednesday his willingness for "thoughtful and long-term sustainable solutions" to make finances more efficient and structures more modern, but opposed "short-term austerity measures at the expense of the regions." States and municipalities are the foundation of a functioning public service - they guarantee education, security, care, and infrastructure directly on site, Haslauer told the "Salzburger Nachrichten".
Schmidt against saving until the economic downturn
The aim is to stick to the 6.3 billion euros this year and 8.7 billion euros in 2026 in consolidation volume, even if the economic policy situation changes and new forecasts are expected in the coming days, emphasized Schellhorn and also SPÖ State Secretary Michaela Schmidt. Saving into a situation now, which would cause the economy to suffer and tax revenues to decrease, would ultimately not improve the budget situation, she said in response to a question about the necessity of additional wealth-related taxes.
Schellhorn, in any case, highlighted the unity in the federal government. Recently, he, together with Finance Minister Markus Marterbauer (SPÖ) and State Secretary Barbara Eibinger-Miedl (ÖVP), conducted negotiations on the planned savings in the ministries. The jointly visible will to save and reform was "refreshing," said Schellhorn. A total of 1.1 billion euros are to be saved in the departments. "The exact distribution, the pie and cake pieces will be presented in the coming days."
(APA/Red)
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