Austria is heading for leaner times as Finance Minister Markus Marterbauer laid out the outlines of a sweeping plan to repair the nation’s strained finances. In a direct and sober address to parliament on Thursday, Marterbauer warned that deep cuts and new revenues are unavoidable but promised the pain would be shared fairly across society.
He described the coming dual budget as a “giant sanitation package” worth around nine billion euros, aimed at shrinking Austria’s huge deficit of 30 billion euros, about 5.8 percent of the country’s economic output. The goal: bring the gap down to just three percent by 2028, in line with European Union standards.
Every government ministry will be asked to tighten its belt. Subsidies and grants will be a major target, with total cuts reaching 800 million euros by 2029. Officials must scrap at least one full funding program each, and 150 million euros in annual savings have already been identified.
To boost revenue, roughly three billion euros will come from new measures, including higher contributions from banks, energy firms, and private foundations. Stronger efforts against tax fraud are expected to raise another 270 million euros this year. “Those who earn the most must also contribute the most,” Marterbauer said, signaling that fairness remains at the heart of his plan.
While a wealth or inheritance tax remains off the table for now, the popular research premium program worth 1.2 billion euros annually will stay untouched, viewed as an investment in Austria’s future.
Marterbauer also promised efficiency in climate spending but continued support for cleaner energy, rail transport, and innovation. Lower energy costs, cheaper rents, and targeted tax relief, he said, could ease price pressures and help reduce inflation by roughly one percentage point.
“The success of this huge savings package depends on everyone,” Marterbauer concluded. With his warning clear and his resolve firm, Austria now prepares for a harder, but hopefully fairer, road to economic recovery.
