Austria is grappling with a growing budget crisis as its deficit is projected to reach up to 12 billion euros, double the initial estimate.
The weak economy has led to lower tax revenues and higher expenditures, increasing the likelihood of an EU deficit procedure.
Finance Minister Markus Marterbauer warns against excessive austerity, which could further harm economic growth, creating a "vicious cycle.
" Experts predict Austria's deficit could exceed 3.5%, with potential to approach 4%, far above the EU's 3% threshold.
The government is preparing a new budget plan, with discussions set to conclude by April.
Despite the challenges, Marterbauer emphasizes that an EU deficit procedure would not be catastrophic, as long as Austria demonstrates a credible plan to reduce its deficit.
