Austria's 2028 budget deficit target under pressure from NEOS minister and central bank

NEOS leader Claudia Meinl‑Reisinger defended the government’s proposed double‑budget, calling it a “big throw”. The plan aims to bring the fiscal deficit down to the EU‑allowed 3 % of GDP by 2028, with a focus on cutting wage‑related costs, which she says will create more jobs and better pay. She also expressed optimism about reaching a consensus on defense reforms, including strengthening the militia, while critics from the FPÖ and the Green Party questioned the feasibility of the measures.

The Austrian National Bank (OeNB) warned that its forecasts point to a deficit of about 3.8 % of GDP in 2028, citing rising interest‑payment burdens, EU contributions and a challenging economic outlook. Earlier analyses by the IHS, WIFO and the Fiscal Council had already doubted that the current savings measures would be sufficient, suggesting further consolidation will be needed to meet the target.