2024-11-20 12:21:00
Shortly after his inauguration, the new Finance Minister Gunter Mayr presented himself to the National Council. The previous top official promised to carry out the office with humility and saw his appointment as an “expression of trust in the civil service.” The accompanying debate, which ended up being extremely heated, brought on the one hand criticism of the government’s budget policy and, on the other hand, an outlook on how the coalition negotiators imagine a restructuring of the state’s finances.
Mayr then promised “full concentration on the budgetary situation”. He apparently dissatisfies the forecasts of the economic research institutes, which predict very high deficits. The EU Commission expects a lower deficit of 3.6 percent for this year and 3.7 percent for next year. Of course, this value is also too high for Mayr: “In 2025 we should get below three percent.” Because otherwise there would be a deficit procedure: “Of course that has to be averted.”
Coalition defends itself
The previous coalition also tried to present its own work in a more positive light. In terms of economic strength, Austria is still among the best in Europe, emphasized Civil Service Minister Werner Kogler (Greens). Chancellor Karl Nehammer (ÖVP) referred to the difficult times that Austria had found itself in and that, in addition to overcoming the various crises, offensive measures such as arming the armed forces were also necessary. Mayr’s predecessor Magnus Brunner (ÖVP) thanked Nehammer for acting “prudently” and “with a cool head”. Nehammer also has confidence in the new department head: “I am convinced that he is the right choice for the Ministry of Finance.”
As far as the coalition negotiations are concerned, the VP leader said: “The goal must be to form a government that is capable of acting.” The aim is to serve the Austrians in the best sense of the word. There is no need for the “backward-looking politics” that the FPÖ stands for, added the club’s managing director August Wöginger.
Babler wants contributions from wealthy people
The fact that savings need to be made is somewhat beyond discussion, but the question of how remained controversial in this debate. SP club boss Andreas Babler spoke of a “huge challenge” that had to be overcome. However, this will not work with “additional savings” as this would stifle every economic engine. Rather, the SP chairman is now thinking about taxes for the wealthy again: “Broader shoulders should carry more than weaker shoulders.”
NEOS club chairwoman Beate Meinl-Reisinger agreed with Babler that, in her view, investments in the future needed to be made: “But something also needs to be done on the expenditure side.” The situation is serious, the consolidation requirement for 2025 alone is 5.7 billion. Kogler said that savings had to be made and more quickly than SP boss Babler might think. He would start, for example, with climate-damaging subsidies. It is important to save sensibly so that you can also invest.
Kickl sees his voters degraded
FPÖ club boss Herbert Kickl was not particularly enthusiastic about Mayr’s election. Because he would like to have it clarified who in the civil service was involved in the budgetary “pre-election cover-up”. He was referring to the fact that Brunner only presented the higher deficit forecast after the National Council election. Kickl once again expressed incomprehension about the fact that he was not given a chance to form a government. The FP leader complained that the election results were being ignored and believes that 1.4 million liberal voters would see themselves reduced to second-class voters. He called Chancellor Nehammer a “loser and debt emperor.” VP General Secretary Christian Stocker countered in the increasingly emotional debate: “Take note, no one wants you.”
Liberal MP Georg Kaniak believed that the FPÖ was needed in the government. Only with it would the budget hold and an economic perspective emerge: “If you evaluate the government based on the numbers, there can only be a clear insufficient.” Brunner at least forestalled the expulsion and left voluntarily. For now, the FPÖ wants to spend money. She applied for an extension of the electricity price cap, but was left alone.
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What measures will be taken to ensure a reduction of Austria’s deficit below 3% by 2025?
**Interview with Finance Minister Gunter Mayr on Austria’s Economic Future**
**Editor**: Thank you for joining us today, Minister Mayr. Your recent address to the National Council sparked quite a discussion on Austria’s budget policy. Many were surprised by your emphasis on humility. Can you elaborate on what that means for your approach in the Finance Ministry?
**Gunter Mayr**: Thank you for having me. To me, humility means recognizing the tremendous responsibility that comes with this role and understanding the trust placed in me by the civil service and the public. It’s important to approach this position with a commitment to listening, evaluating our challenges candidly, and working collaboratively towards effective solutions.
**Editor**: In your speech, you expressed concerns about high deficit forecasts. The EU Commission predicts a deficit of 3.6% for this year. What steps can we expect from your ministry to address this?
**Gunter Mayr**: We are fully committed to focusing on the budgetary situation and taking proactive measures. It’s crucial we aim to reduce the deficit below 3% by 2025. That requires not only careful financial planning but also strategic reforms and an open dialogue with the other coalition partners about responsible spending and revenue generation.
**Editor**: During the debate, there was a defense of the previous coalition’s financial management. How do you plan to balance criticism with continuity in fiscal policy?
**Gunter Mayr**: Acknowledging past efforts while identifying areas for improvement is key. We must build on the strengths of the previous administration and address shortcomings effectively. I believe that constructive debate is essential, as it pushes us towards a stronger, more resilient economic strategy.
**Editor**: The SP’s leader, Andreas Babler, proposed increasing taxes for the wealthy as a way to generate revenue. What are your thoughts on that approach?
**Gunter Mayr**: The conversation about fair taxation is important. While we must look at how to generate sufficient revenue, it’s vital to ensure that any measures taken do not stifle economic growth. Balancing tax fairness with economic motivation is a challenge we need to face collaboratively with all parties involved.
**Editor**: with all these discussions going on, how confident are you that your coalition can overcome these challenges and create a functioning government?
**Gunter Mayr**: I am optimistic. Our coalition is committed to forming a government that is capable of acting decisively and effectively. It will take hard work and dedication, but I believe that by prioritizing the needs of the Austrian people and fostering an environment of collaboration, we can meet the challenges ahead.
**Editor**: Thank you for your insights, Minister Mayr. We look forward to seeing how your plans unfold in the coming months.
**Gunter Mayr**: Thank you for having me; I appreciate the opportunity to share my vision for Austria’s economic future.