Budget Hole Bigger Than Ever: Now We Even Face New Taxes
As was announced earlier this week, the budget gap significantly exceeds previous expectations. Instead of the originally calculated 6.4 billion euros, the deficit now amounts to more than 12 billion euros. The main reasons cited are the persistently high expenditures and weak economic performance.
Austria Faces Another EU Deficit Procedure
The federal government had set a goal to save 6.4 billion euros this year and an additional two billion in the following years. This was intended to prevent a European Union deficit procedure and reduce new debt below the critical three-percent mark. These plans now seem far off.
Uncertain Future of Ancillary Wage Costs
Finance Minister Markus Marterbauer (SPÖ) expresses concern about the current situation. The reduction of ancillary wage costs planned in the government program from 2027 is now on the brink. A one percent reduction would cost about 2 billion euros - funds that are currently unavailable.
New Taxes as a Possible Solution
Marterbauer suggests new taxes as a potential solution. He emphasizes the need for counter-financing and warns of a "vicious spiral." The weak economy further exacerbates the budget deficit situation.
Starting in April, new tax increases and higher fees will come into effect to contribute to budget consolidation. These measures are expected to lead to increased costs for the population.
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