According to a paper available to the APA, it wants to scrape together at least 14.5 billion euros: through renegotiation of all budget items, subsidy brakes, greater efficiency and more “performance-oriented” social benefits.
Finance Minister Magnus Brunner and Chancellor Karl Nehammer are citing, among other things, a current OECD country report that recommends a stronger anchoring of so-called spending reviews. In other countries, this would have made it possible to reduce spending by around eight percent. In addition, the new government – which Nehammer would like to lead – is to pursue a “zero-based budgeting” approach. All budget items would have to be renegotiated. The ÖVP hopes that a total of around 3.5 billion euros could be saved here.
Reduction of the funding rate to the EU average
Reducing Austria’s funding rate from around 7.5 percent of GDP to the EU average of 6.7 percent is also expected to bring in 3.5 billion euros. Because crisis measures are also expiring, the People’s Party is crediting another half a billion euros. The aim is to increase efficiency in public administration, which is expected to bring in one billion euros.
The ÖVP also hopes to achieve savings by “strengthening performance incentives in the social system”, for example up to 2 billion euros through a reform of unemployment insurance. In addition, “immigration into the social system should be stopped”.
The ÖVP is hoping to generate further billions, not least through economic growth and more employment, which its plan is intended to trigger. Tax cuts would have a certain degree of self-financing, with around 40 percent being mentioned, citing EcoAustria. According to the ÖVP model, this alone would bring in around 4 billion euros, according to the current chancellor’s party.
“Mixture of relief and performance incentives”
In a statement sent along, Brunner raved about a “well-thought-out mix of relief and performance incentives.” Nehammer, on the other hand, promised to quickly develop further budgetary flexibility. As the APA was told, all of this is part of the ÖVP election program, which is to be presented on September 5.
The opposition reacted disparagingly. “A vote for the ÖVP is a vote for new taxes and further burdens,” said FPÖ General Secretary Michael Schnedlitz in a press release. The SPÖ warned against an “Austria dismantling plan” by the ÖVP and saw massive cuts in health, pensions and education looming if a black-blue coalition were to come into being. The NEOS, on the other hand, reiterated the need to curb spending while simultaneously reducing non-wage labor costs and accused the ÖVP and SPÖ of inaction in this matter.
