Causa budget restructuring

Wifo head sees scope for tax increases

Wifo boss Gabriel Felbermayr is in favor of honesty and confidence at the same time. "It won't be pleasant, but it is feasible." He warns not to lose sight of the climate targets for 2030, otherwise there is a risk of severe penalties.(Bild: APA/HANS KLAUS TECHT)

How the budget can be restructured has been occupying the blue-black negotiators for days. The head of the Economic Research Institute (Wifo), Gabriel Felbermayr, sees scope for tax increases and mentions income tax for high earners, tobacco tax and property tax as possibilities.

This year will be difficult, that much is certain for Felbermayr. Nevertheless, the economist appeals to politicians to "eliminate uncertainty".

(Bild: Krone KREATIV)

"The situation is not hopeless"
The situation is not hopeless. If we manage to restore confidence, we will "hopefully have more growth again", and with more growth, budget consolidation will also be much less difficult.

Measures needed on the revenue side
However, Felbermayr emphasizes that measures will be needed on the revenue side. He mentions the expansion of the tobacco tax and a reform of the property tax. The abolition of the climate bonus and a temporary solidarity surcharge for high earners are also conceivable for him. Specifically, an additional two percentage points could be introduced for three years for top earners. Whether or not there is an EU deficit procedure is "secondary" for Felbermayr. "What is necessary is that we put a credible plan on the table."

What is necessary is that we put a credible plan on the table. Whether the EU deficit procedure or not is actually of secondary importance. However, it will not work purely through savings on the expenditure side.

Gabriel Felbermayr, Chef des Wirtschaftsforschungsinstituts (Wifo),

Successful consolidations always happen on the expenditure side as well as the revenue side, said Felbermayr in the ORF "Pressestunde" on Sunday. Felbermayr also emphasized that the future government will have to initiate a pension reform.