In the event of a coalition

SPÖ fears social cuts by ÖVP/FPÖ

On Thursday, the SPÖ accused the black-green government of leaving behind a "budget disaster" and warned of a social clear-cutting in the event of an FPÖ-ÖVP coalition after the elections in the fall.

Should the SPÖ come into government afterwards, it would put all projects of the current coalition up for discussion without counter-financing, emphasized finance spokesman Jan Krainer on Thursday. He cited the reduction in corporation tax as an example.

In the coming weeks, he will be touring Austria to show how the federal government has "starved Austria's piggy bank" and what could be expected under a black-blue government - namely cuts to pensions, healthcare and education, Krainer said next to a starving plastic pig.

"Money abolished" in Corona times
Krainer emphasized that the SPÖ had handed over a reorganized budget to the successor government in 2017. In the meantime, the structural deficit, i.e. the deficit adjusted for economic influences, had shot up from 0.5 to 2.7 percent. Unlike in the SPÖ governments, the ÖVP, first with the Freedom Party and then the Greens, had not ensured counter-financing through cuts or additional revenue. In the coronavirus era, "the money was abolished" and too much economic aid was distributed.

A "budget disaster" was followed by an "economic disaster"
After the start of the war in Ukraine, the government did not react for too long, so that the "budget disaster" was followed by an "economic disaster", said Krainer, referring to high prices and unemployment figures.

There was enough wealth in Austria, Krainer emphasized, it just needed to be distributed more fairly. Currently, five families have as much as 4.5 million Austrians combined - "that was last seen in the monarchy". It is not only a question of social justice, but also of economic common sense to ensure a better distribution with taxes on millionaires and contributions from those who were doing incredibly well during the corona and inflation crisis.

The answer is more contributions from capital and wealth while at the same time reducing taxes and levies on labor, according to "all economic research institutes". The super-rich in the country should pay at least the same amount of tax as normal earners, and not just half of it, emphasized Krainer.

The election in the fall is a choice, explained Federal Managing Director Klaus Seltenheim - namely between a government "that finally does something about the price madness" and a black-blue government with "gloomy prospects" for employees, including a continuation of the "budget disaster".