Austria is facing a significant fiscal challenge as the country's budget deficit is projected to rise sharply in the coming years.

The Fiscal Council has revised its forecast, predicting a budget deficit of 3.9% for this year and 4.1% for 2025, well above the EU's Maastricht limit of 3%.

This increase is attributed to long-term economic policies, including tax cuts and increased spending on pensions and infrastructure.

The government must find at least 4.4 billion euros in savings by 2025 to address this deficit.

The situation is further complicated by a shrinking economy, which reduces tax revenues.

The likelihood of an EU deficit procedure against Austria is growing, as the country's debt ratio is expected to exceed 80% of GDP by 2025, far above the pre-pandemic level of 71%.