Austria is facing a significant budget deficit, with the national shortfall reaching 4.7% of GDP last year.

In response, leaders from the federal government, states, and municipalities met in Vienna to discuss solutions.

Chancellor Christian Stocker announced a multi-step plan to reduce the deficit below 3%, with a long-term goal of 1-2%.

The majority of the debt lies with the federal government, but states are also struggling due to rising costs in education, healthcare, and childcare.

Only Upper Austria reported a budget surplus in 2024, while Vienna recorded the largest deficit.

Proposals include introducing fees for non-essential public services to better manage resources.

Officials expressed optimism, citing past successes in overcoming financial crises.