In the ORF "Pressestunde," he also expressed pessimism regarding pensions, health, and care for the following years. He advocated for an increase in the statutory retirement age and also supported inheritance and capital gains taxes. Another year of recession would be bad for the Austrian budget, Badelt explained. The planned exclusion of military expenditures by the EU Commission would only slightly reduce Austria's consolidation needs, probably by less than half a percentage point.

Fiscal Council Chief Badelt Wants Increase in Statutory Retirement Age

And: "We need to get the budget in order, even if there were no EU." This is to avoid overburdening it with interest payments, to make room for future investments, and to maintain the ability to respond to crises. On the other hand, Badelt showed understanding that some economists currently have sympathies for an EU excessive deficit procedure, as it allows for a slower consolidation path. Because "destructive elements of saving" would be somewhat mitigated, with correspondingly fewer negative impacts on the economy.

In the long term, the head of the Fiscal Council warned of a "demographic bomb" for the budget due to the aging population. If no intervention is made in pensions, care, and health, future deficits of five to six percent are threatened. He finds it "really bad that this government obviously does not dare again to raise the statutory retirement age in the long term," he criticized. Even if pensions remain fundamentally affordable, the pressure on the state budget must be reduced: "Otherwise, budgets cannot be presented at all in five or ten years."

Praise from Fiscal Council Chief Badelt for Finance Minister Marterbauer

In general, Badelt was bothered by the fact that currently only the budgets for 2025 and 2026 are being discussed. One must also consider consolidation in the long term and not, like Finance Minister Markus Marterbauer (SPÖ), say that two hard years are coming, and then everything will be fine. "Nothing is fine," emphasized the Fiscal Council president. For Marterbauer himself, whom Badelt knows well from the Fiscal Council, Badelt had praise otherwise. Although his political positions, which he has never hidden, are considered far left. However, the current finance minister was the one from whom the best compromise proposals came. If Marterbauer proceeds in the government in this way, then that is good, said Badelt.

Fiscal Council Chief Badelt Personally for Capital Gains Taxes

When asked about wealth taxes, for which the SPÖ advocated during the election campaign, Badelt said he personally is a supporter of inheritance and capital gains taxes, but not of wealth stock taxes. In the Fiscal Council, this position is not enforceable, so it is his personal view. Regarding the global economy, he said that the tariffs of US President Donald Trump represent a "lose-lose situation." Badelt expects that the tariffs will massively drive up prices in the USA. Additionally, the "arbitrariness of his actions" is poison for the economy. However, Europe must also "brace itself" in terms of competitiveness with regard to China. Chinese companies are advancing into areas where Germany and Austria are strong.

(APA/Red)

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