Austria's Austerity Plan Sparks EU Concern, Critics Say It Targets Vulnerable
Austria's government faces criticism and potential EU sanctions over its austerity package, which aims to tackle a high deficit but may disproportionately affect the most vulnerable. The plan includes cuts to climate bonuses, higher pension contributions, and a two-year freeze on family allowance increases.
The opposition and trade unions argue that the austerity measures are 'socially unbalanced', with the weakest in society bearing the brunt. Despite these cuts, Austria's deficit remains high, prompting the EU to initiate a deficit procedure. Economic growth is predicted to be stagnant at best in 2025, lagging behind the Eurozone average.
The government's double budget foresees drastic cuts of over 15 billion euros. However, the independent Fiscal Council, led by Christoph Badelt, doubts these calculations and predicts a higher deficit than assumed. Austria's expected deficit of 4.5 percent in 2025 is far from the EU's 3 percent limit, leading to the deficit procedure by Brussels. The success of the austerity plan depends on EU Commission acceptance, with potential for more painful cuts if the plan fails.
The Austrian government's austerity course is considered risky, with further cuts threatened if the economy does not improve. Despite criticism, the government is pressing ahead with its plan to stabilize public finances, which includes long-demanded structural reforms in pensions, health, care, and education.
Read also:
- U.S. CBP's Operation Plaza Spike Boosts Fentanyl Seizures Along Arizona-Mexico Border
- Regensburg Court Sentences Pizza Delivery Owner for Illegal Employment, Tax Evasion
- Tesla's EV Market Share Plummets in Europe, US Competition Intensifies
- Catastrophe at a U.S. Steel facility in Pennsylvania results in the loss of two lives. crucial details unveiled
