Vienna, May 22 — Austria’s National Council has approved a major financial reform package aimed at fixing the country’s budget, but it comes with sharp increases in public service fees that have drawn strong criticism, especially from opposition parties.
One of the most debated changes is the rise in health insurance contributions for retirees, which will go up from 5.1% to 6%. In return, the government has promised to freeze the current prescription fee of €7.55 per medication package starting next year.
The reform also includes changes to how prescription costs are handled. Starting in 2027, even medications that cost less than the prescription fee will count toward the yearly cap. This cap will be lowered from 2% of a person’s annual income to 1.5% by 2030. Critics say this relief comes too late and is partly canceled out by a rise in the national e-card fee, which many patients use to access healthcare.
Opposition members from the Green Party and the Freedom Party (FPÖ) say the measures will hurt low-income people the most. A study from the budget office shows that the poorest 10% of the population will be affected three times more than the wealthiest 10%. Finance Minister Markus Marterbauer from the Social Democratic Party (SPÖ) defended the plan, saying the study didn’t include other helpful programs like language support and child maintenance guarantees.
NEOS lawmaker Karin Doppelbauer warned that without changes, the pension system could face a €40 billion shortfall by 2029. The ruling ÖVP party also pushed back against the criticism, saying that all parties have a role in managing public finances and must help solve the crisis.
