State budget 2025

Politicians praise themselves even though the location is faltering

In view of the KTM bankruptcy, hymns of praise for a "forward-looking location policy" seem slightly out of place.(Bild: Pressefoto Scharinger/Daniel Scharinger)

On Monday, Markus Achleitner, State Councillor for Economic Affairs, presented the budget of his "location department" for 2025 to media representatives. Despite an increase of 4.5 million euros compared to the previous year, some sentences in the press document read slightly out of place in light of the KTM insolvency.  

It is possible that Markus Achleitner (ÖVP), State Councillor for Economic Affairs, had already written the document presenting the budget for his "location department" before the bankruptcy of motorcycle giant KTM came to light. In light of the insolvency of the leading Upper Austrian company, it does not sound very credible to talk about "forward-looking location policy" and that Achleitner's budget for 2025 is intended to "secure and create jobs and added value in figures, as well as strengthen the future viability and thus competitiveness of companies in Upper Austria".

Demands on the "government negotiators"
Yes, the KTM insolvency has caught state politicians on the wrong foot - and has also demonstrated to them that it is not enough to simply use euphonious phrases from the PR textbook. It is therefore not surprising that Achleitner immediately turns to the "government negotiators in Vienna": "The economic engine needs more horsepower again: investment incentives, performance incentives, down with conditions," he demands of the coalition yet to be formed.

The state's own priorities
But of course the state is also setting its own priorities: The funds for research and development will be increased once again in 2025 and will then amount to 103.2 million euros. A total of 1.3 billion euros will be invested in the construction of housing, schools, kindergartens and roads - this will benefit the construction industry. The government has also set itself the goal of remaining a "pioneer in the energy transition" - 42.7 million euros are available for a hydrogen offensive, the switch to renewable energies and "green" industrial production.

Greens do not approve budget
There is no applause from the Greens: the budget does not provide any answers to the changing framework conditions. "We are reacting to changing economic challenges and necessities with the same recipes," criticized economic spokesperson Dagmar Engl. The Greens announced on Monday that they would not approve the entire black-blue budget in the upcoming state parliament.

The SPÖ is taking the same line: not only Achleitner's program, but the entire 2025 state budget is "unimaginative, inefficient and non-transparent", according to the red state parliament club. It would only lead Upper Austria "even deeper into crisis".