As per his interview with ORF, Andreas Babler, Austria’s Vice Chancellor and SPÖ leader, voiced concerns over deeper budget cuts, stressing that reducing spending further could harm consumer confidence and economic stability. The coalition government, comprising ÖVP, SPÖ, and NEOS, has already agreed on a 6.4-billion-euro savings package to prevent an EU deficit procedure. However, with new economic forecasts showing a weaker outlook, discussions about additional austerity measures have intensified.
Babler opposes drastic cuts, arguing that the government needs financial flexibility to tackle rising living costs. Finance Minister Markus Marterbauer has also downplayed the impact of an EU deficit procedure, calling it no “life-or-death situation.” Unlike the ÖVP and NEOS, the SPÖ has been open to accepting a deficit procedure rather than imposing severe austerity measures.
Defending his party’s influence on government policy, Babler highlighted key SPÖ-backed initiatives, such as rent price caps, increased taxation on windfall profits in the energy sector, and banking levies. He affirmed that social justice remains at the heart of the SPÖ’s agenda.
On migration, Babler emphasized the importance of proper registration and tracking of individuals entering Austria. He also supports capping family reunifications to ensure a more organized immigration process.
Regarding housing, Babler aims to reintroduce earmarked housing subsidies, ensuring funds are used strictly for public housing projects. He also praised efforts to limit rent hikes in the unregulated market, a measure expected to be implemented soon. Under the proposed plan, rent increases would be capped at three percent, plus half of any inflation rate exceeding that threshold.
