"Unimaginative Clear-Cutting": Budget Week Starts with Critical Tones

At the beginning of the budget week in the National Council, a general debate on Monday saw differing assessments clash. While the Greens mainly criticized the cuts in the climate sector, but also in the social sector, the FPÖ found virtually nothing to like about the budget draft for 2025 and 2026. In contrast, the ÖVP, SPÖ, and NEOS see a successful mix of consolidation and active measures.

The double budget, which foresees a total state deficit of 4.5 percent of GDP for this year and 4.3 percent for the coming year, will not be decided until Wednesday, after the individual areas have been worked through chapter by chapter over three days. However, the budget accompanying law was already passed on Monday with the votes of the three governing parties ÖVP, SPÖ, and NEOS.

End of Climate Bonus Decided

The largest chunk of the passed budget accompanying law is the end of the climate bonus. Also included are, among other things, a higher starting age for the corridor pension, the suspension of the so-called "variable third" from cold progression, as well as the valorization of family benefits, health and retraining allowances until 2028, the increase of the service fee for the e-card, an increase in the initial tax rate for donations to private foundations, and a far-reaching abolition of additional earning opportunities for the unemployed.

Also decided were an expanded application of the electronic ankle bracelet and relief measures for municipalities, the increase of the commuter euro, and easier access to the craftsman bonus. Other measures include the elimination of the education bonus for social assistance recipients during longer training measures, the non-valorization of party funding next year, cuts to the forest fund, a reduction in special sports funding, cuts to various environmental subsidies, as well as savings at ORF and "Wiener Zeitung." Also approved on Monday with the votes of the three-party coalition was the creation of a budgetary basis for the financial security of the payment of annuities arising from the ÖBB framework plan until 2030.

FPÖ and Greens Criticize Budget

FPÖ club chairman Herbert Kickl described the budget draft during the general debate as a "heartless and unimaginative clear-cutting." Despite record revenues, additional debts would still be incurred, and in the fall, the "next burden hammer" would surely come. Even now, pensioners, families, and top performers are being punished, while the "all-inclusive club of the mass migration" remains.

Kickl blames the difficult budget situation on "mass migration," "Corona madness," "fanatical climate fetishism," and "armament madness." "You have all sinned heavily," said the FPÖ leader towards the other parties and further explained: "They hang the penance for their mortal sins on their own population." The blue deputy Arnold Schiefer, in turn, criticized that not a single suggestion from the opposition had been taken up in the committees. By no means is the budget a great success, and a deficit procedure has also been incurred.

In a much more moderate tone, but also not exactly enthusiastic, the Greens reacted to the budget draft. Some measures, such as the bank levy, were appreciated there, but much else was not: "This budget is political timidity cast in numbers," said the designated new party leader Leonore Gewessler. Climate protection is now only a "sideshow."

Club Chairman Werner Kogler lamented the jobs lost due to the stalling of the climate transition and cautioned that reversing policy in this area could lead to penalties. Kogler also regretted that in the case of "cold progression," the third intended for social balance was being withheld.

Stocker: "Not a Pure Austerity Budget"

The ÖVP viewed the presented figures much more positively. Chancellor Christian Stocker (ÖVP) emphasized: "This is not a pure austerity budget, because investment will be possible." The budget draft is not a routine act, but a turning point after the many crises of recent years: "We will return to sustainable fiscal policy." ÖVP Club Chairman August Wöginger saw "a budget that does not sugarcoat and initiates a new path."

Towards the FPÖ, the ÖVP parliamentary group leader remarked that Kickl had the opportunity to take on government responsibility. However, seven days of 24-hour work might have been too much for him: "You can't go mountain climbing anymore."

NEOS Club Chairman Yannick Shetty also noted that Kickl was not willing to take responsibility. His party, on the other hand, wants to "go into the dilapidated structures of the country." The first task was to consolidate and press a "stop button for the watering can policy" of recent years. This double budget is just the beginning: "The government's reform path has only just begun."

Vice Chancellor Andreas Babler (SPÖ) also made it clear that his party is not responsible for the current figures. SPÖ Club Chairman Philip Kucher even spoke of a "dramatic pile of shards" left by previous governments. As Babler emphasized, savings are now being made ambitiously while ensuring that "the delicate economic plant" actually grows: "We are presenting an honest budget today, not a facade."

"Broad Shoulders Bear More in the Budget"

The SPÖ leader highlighted that the SPÖ had paid attention to social balance and social cohesion, which is why the wealthy are also being appropriately involved: "Broad shoulders bear more in the budget." The "necessary social sensitivity" remains intact, said Kucher. The "planned blue-black lawnmower" has been turned off. The green watering can no longer exists either.

Finance Minister Markus Marterbauer (SPÖ) called the budget a "great compromise." It has been possible to take the "first big steps," both on the expenditure and revenue sides. The double budget also includes "many measures supporting the economy." The Fiscal Council confirmed the budget policy and the effectiveness of the restructuring measures on Monday, Marterbauer finds. A number of measures are not yet sufficiently specified, but work is being done in all areas on concrete guidelines. For example, a legislative package against tax fraud will be presented in the fall. "There is still a lot of work ahead of us, but the turnaround in budget policy has been initiated."

(APA/Red)

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