Austria's new coalition government has introduced a rent cap to ease financial pressure on citizens.

The measure, part of broader budget reforms, freezes rent increases for older apartments, saving tenants an estimated €140 million this year.

Plans are underway to extend the cap to new buildings by 2026. The government also announced cuts to public spending, including the elimination of the education leave program and reductions in ministry budgets.

A new banking levy and energy provider contributions are set to generate additional revenue.

These steps aim to balance the budget while addressing economic challenges.