NEOS leader proposes reform dividend for Austrian budget

NEOS leader Beate Meinl-Reisinger has proposed a concept called a ‘Reformdividende’ (reform dividend) to manage Austria’s budget consolidation. The proposal suggests that if the government exceeds its deficit reduction targets, the surplus should be split: 50 percent would be used to reduce national debt and interest costs, while the remaining 50 percent would be returned to working citizens as tax relief via a tax allowance.

Meinl-Reisinger emphasized that budget savings should not be immediately redirected into new subsidies, describing the current cycle as ‘spending, saving, spending, saving.’ She suggested this mechanism be made binding, ideally through a constitutional law.

In addition to fiscal policy, Meinl-Reisinger advocated for pension reforms, specifically calling for mandatory ‘pension splitting.’ This would allow parents to transfer up to 50 percent of pension account credits to the parent primarily responsible for childcare during the first seven years after a child's birth.

Other topics raised during her ORF interview included the need for more attractive military service and the importance of providing targeted, non-indiscriminate aid to farmers affected by drought.