Brussels – April 22: Austria is falling further behind in meeting the European Union’s financial rules, as new numbers from Eurostat reveal that the country’s deficit and overall debt remain above EU limits reported by Austria 24 News. While many EU countries are tightening their belts, Austria is sinking deeper into the red.
In 2024, the average budget deficit across the EU was 3.2% of gross domestic product (GDP), slightly better than last year’s 3.5%, but still above the EU’s limit of 3%. Austria, however, reported a higher-than-average deficit of 4.7%, showing that the country continues to struggle with controlling its spending.
The total public debt in the EU stood at 81% of GDP, and Austria’s was just above that at 81.8%. According to long-standing EU rules—known as the Maastricht criteria—countries should keep public debt below 60%.
Some countries, like Denmark, Ireland, and Luxembourg, managed to avoid taking on any new debt in 2024. But others, including Romania (9.3%), Poland (6.6%), and France (5.8%), reported major deficits. In total, 12 EU nations broke the 3% deficit ceiling, though Germany stayed just under at 2.8%.
France is already facing an official EU deficit procedure due to repeated rule-breaking. Belgium, Italy, Hungary, and a few others may follow. Austria has not yet faced penalties, but pressure is rising.
Debt Rules Are Changing
The EU is now trying to adapt its rules to today’s realities. While the strict debt limits stay the same, countries like France and Italy are being given more time to cut their debts. With the aftermath of the COVID-19 crisis and the war in Ukraine still felt across Europe, the EU is also debating if military spending should be treated more flexibly in the future.
