Austria's 2027/28 Budget Deal Boosts Industry, Voestalpine Reports 59% EBIT Rise

Austria's governing coalition of the ÖVP, SPÖ and NEOS reached a double‑budget agreement for 2027/28 that targets a three‑percent deficit by 2028 to exit the EU deficit procedure. The plan includes around €2.5 billion in savings and another €2.5 billion earmarked for future projects such as a €340 million early‑education boost, a housing package, a women's budget of €51 million and a series of measures – a one‑percentage‑point cut in wage‑costs, re‑introduction of agrarian diesel, administrative savings, extension of the strategic gas reserve, continuation of the industrial electricity bonus and price cap, and a climate‑subsidy reduction of €150 million per year. Chancellor Christian Stocker, Vice‑Chancellor Andreas Babler and NEOS leader Beate Meinl‑Reisinger all praised the deal for delivering stability and growth.

Steel producer Voestalpine, one of Austria’s largest private employers, posted a 59 percent jump in EBIT to €723.5 million for FY 2025/26 despite a 4.3 percent revenue decline to €15.1 billion. Net profit more than doubled, and net debt fell to €1.26 billion (gearing 16.2 %). The company attributes part of the performance to the new budget’s wage‑cost reduction and the extended industrial electricity bonus. It is also investing €1.5 billion in a “greentec steel” project, with the first plant expected in early 2027. Voestalpine’s share price rose about 21 percent year‑to‑date.