Austria's Budget Debate Heats Up

Published: 2025-03-23

Austria's Vice Chancellor Andreas Babler has voiced opposition to further budget cuts beyond the agreed €6.4 billion package, warning that additional austerity could harm consumer confidence.

The government aims to avoid an EU deficit procedure, but economic forecasts have worsened, raising questions about the sufficiency of current measures.

Babler emphasized the importance of maintaining flexibility to address inflation and protect social programs.

The SPÖ has pushed for measures like a rent cap and higher taxes on banks and energy companies, showcasing its influence in the coalition.

Meanwhile, Babler dismissed concerns about his leadership style and highlighted the coalition's shared commitment to economic stability and social equity.