High national debt

Nehammer: “Reasonable economic growth” helps

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11.07.2024 17:31

The OECD (Organization for Economic Cooperation and Development) recently criticized Austria's high national debt and spending on pensions. However, Chancellor Karl Nehammer (ÖVP) is now relaxed. "Sensible economic growth" and a "sensible budget plan" would help.

"We have four and a half years of crisis management behind us, which has cost a lot of money," said the Chancellor on Thursday in Dornbirn. Many "necessities" no longer exist today. "With reasonable economic growth and a sensible budget plan, we have the opportunity to consolidate."

Austria is "in line with the EU average" and the budget deficit will probably remain below the Maastricht limit of three percent. According to the politician, savings can be made above all by restructuring the support system; support measures should be selective and less long-term.

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We have four and a half years of crisis management behind us, which has cost a lot of money.

Kanzler Karl Nehammer

Increase the actual retirement age
Regarding the OECD's proposal to adjust the retirement age to the higher life expectancy of the population, Nehammer noted that the reform was only now beginning to take effect. There was no need to discuss a higher retirement age than 65 as long as the actual age was 62. But working longer must be worthwhile.

NEOS: "Completely irresponsible"
Criticism of the Chancellor's statements came on Thursday from the FPÖ and the NEOS. "Such false and irresponsible statements underline once again that we must not leave the Ministry of Finance to the ÖVP in a future government," said NEOS budget spokesperson Karin Doppelbauer. Not implementing any reforms is "completely irresponsible." "Because only through a debt brake and targeted structural reforms in large spending blocks such as federalism or pensions can the billions be saved that we need so that young people still have every opportunity and a good future," she said in a statement.

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This federal government has created more new debt than ever before. This is the reality that Nehammer has to face.

FPÖ-Finanzsprecher Hubert Fuchs

The FPÖ, in turn, said that the Finance Minister (Magnus Brunner, note) had lost control of the budget. "This federal government has taken on more new debt than ever before. This is the reality that Nehammer must face," said FPÖ finance spokesman Hubert Fuchs. The voters would also pass judgment on this on September 29.

This article has been automatically translated,
read the original article here.

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