Austria's 2027/28 budget faces debt‑brake debate and EU deficit scrutiny
Finance Minister Markus Marterbauer (SPÖ) is slated to deliver Austria’s double‑budget for 2027‑2028 on 10 June. Opposition parties argue that essential accompanying legislation is still missing, hindering parliamentary scrutiny. The FPÖ’s budget spokesperson Arnold Schiefer has filed a request for a “debt brake” modeled on Upper Austria, warning that rising interest payments – €8.3 billion in 2025 – threaten the state’s credit rating and crowd out spending on care and childcare.
The European Commission praised Austria’s recent fiscal measures but noted that the 2024 deficit remains at 4.7 % of GDP, above the Maastricht 3 % ceiling, and a formal deficit procedure is ongoing. Potential penalties could reach several million euros, with larger fines possible if climate‑related budget targets are missed.
Within the governing coalition, the Greens call for a fair tax on the ultra‑wealthy to fund social services, while the government pushes higher defence spending, aiming to exceed €5 billion in 2026. University staff cuts and a freeze on new judicial positions have sparked protests, reflecting broader concerns over the austerity package.
Parliament is scheduled to debate the budget next week, with additional measures on support for single‑parent families, renewable‑energy acceleration, and other social initiatives slated for consideration.