Austrian Chancellor Christian Stocker (ÖVP) made a clear statement at a press conference on Friday, stating that the country’s financial outlook is deteriorating and additional austerity measures may be necessary. There is no mention of an inheritance or wealth tax and it remains unclear where the government will apply the red pencil.
Stocker strongly opposes an EU deficit procedure, even if economic projections continue to worsen. The initially planned savings of 6.4 billion euros could still increase if the economic forecasts released at the end of March turn out to be worse than expected.
“If we actually receive worse numbers from the economic forecasters at the end of March, we will of course need to discuss how we plan to handle that” Stocker said.
At the same time, immense funds are to be allocated for the European Union’s proposed defense program, which aims to mobilize 800 billion euros. Stocker hopes that defense expenditures will not fall under EU budget rules, but this has not been decided yet.
Energy policy also remains a sensitive topic. The energy price brake was abolished due to limited financial resources. Instead of direct subsidies, other measures will be implemented in the future to secure Austria’s competitiveness despite high energy prices.
While the Austrian public may face further cuts, billions are being allocated for European defense. The extent to which citizens and businesses will ultimately have to dig deeper remains uncertain.