Strong Reactions

“Cutting into the future”: Opposition tears into budget

Finance Minister Markus Marterbauer (SPÖ) is facing sharp criticism for his austerity budget presented on Wednesday.(Bild: APA/HELMUT FOHRINGER)

The opposition parties FPÖ and the Greens have nothing good to say about the government’s two-year budget—for different reasons. Criticism of the austerity measures presented by Finance Minister Markus Marterbauer (SPÖ) on Wednesday is also coming, of all places, from his former employer and ally.

The FPÖ criticized that the budget for the years 2027/28 fails to address the country’s major structural reforms. FPÖ budget spokesperson Arnold Schiefer described the draft budget as a “document of budgetary stagnation and organized irresponsibility.”

“A Burden on the Future”
Any debate about individual measures is pointless as long as the overarching goals are not met, Schiefer said in a press release. Merely aiming to meet the EU’s 3 percent deficit threshold is not ambitious enough; “we must finally move toward a balanced budget—anything else is a burden on our children’s future.”

For the Greens, however, too much is being cut—and in the wrong places. “This budget increases inequality and cuts into the future,” the smaller opposition party stated in an initial assessment via press release.

Gewessler calls it a “sham”
Green Party leader Leonore Gewessler criticized the prioritization: While billions are available for highway projects through nature reserves, there is a lack of funding for domestic energy from wind and solar. The Greens also see a lack of social balance. Large inheritances are spared from taxation, while cuts are being made at the expense of women, families, and low-income earners. The budget is also heading in the wrong direction in terms of energy policy by cutting important funding instead of consistently investing in energy independence. The as-yet-undefined phase-out of climate-damaging subsidies is currently “nothing more than hot air.”

Chancellor sees “major coup”
Chancellor Christian Stocker (ÖVP) defended the double budget immediately after the Finance Minister’s budget speech in Parliament. “I believe it is much, much more than the lowest common denominator,” Stocker said, seeing it rather as a “major coup.” After all, a budget for four years had been drawn up within a short period of time. The creation of two consecutive double budgets is also being viewed positively abroad. “This is a double budget with which we aim to exit the deficit procedure, turn the economic upturn into reality, and provide important impetus for competitiveness and prosperity, especially in difficult times,” said Stocker.

Chancellor Stocker (ÖVP) defends the double budget.(Bild: APA/HELMUT FOHRINGER)

The chancellor also defended the austerity measures. “Of course” people will notice them, Stocker said: “And of course, we would have preferred not to have to implement any austerity measures.” However, these are necessary to consolidate the budget and exit the deficit procedure. But they are also providing momentum, Stocker praised the “historic” reduction in non-wage labor costs pushed by the ÖVP, the reintroduction of agricultural diesel, the introduction of the so-called “active pension,” and the defense budget.

SPÖ and NEOS Highlight Successes
Vice-Chancellor Andreas Babler (SPÖ) and NEOS leader Beate Meinl-Reisinger also defended the budget in their own ways on the short-message service Bluesky. Babler spoke of a budget in times of crisis and pressure to cut costs. Nevertheless, he said, they had prevented tuition fees and an increase in the retirement age. The SPÖ leader pointed in particular to the proactive measures in nursing care, childcare, and early childhood education, as well as the contribution of banks and companies to fiscal consolidation. Meinl-Reisinger emphasized that the budget provides planning security for two years, sustainably restructures the budget, and makes targeted investments in education, businesses, and families. “Everyone is doing their part—especially politicians—to ensure that burdens are distributed fairly and intergenerational justice is achieved,” said Meinl-Reisinger.

Foreign Minister Meinl-Reisinger, Education Minister Wiederkehr, Finance Minister Marterbauer, and Vice-Chancellor Babler (from left to right) see successes.(Bild: APA/HELMUT FOHRINGER)

Chamber of Commerce pleased with“
 ” The Austrian Federal Economic Chamber (WKO) particularly welcomed the reduction in non-wage labor costs, which it had been calling for for years. This would provide businesses with tangible relief. Another positive aspect is that inheritance and wealth taxes are not included in the budget, as these are anti-business and counterproductive, according to WKÖ President Martha Schultz.

This is precisely what the Chamber of Labor (AK)—where Marterbauer had worked for years as a department head—criticized. The proactive measures for care and kindergartens are welcome, “but the hardships are unevenly distributed,” said AK budget expert Georg Feigl. “Some are being asked to contribute too much because parts of the federal government don’t want to target those who stand to gain millions. Or areas where revenue potential is practically lying on the street. This course must be corrected by 2029 at the latest.”

“The super-rich are spared”
The KPÖ also assessed the budget as “anti-social and unfair.” The main burden of the cuts falls on low-income individuals and pensioners, said KPÖ federal spokesperson Tobias Schweiger. Volkshilfe also took a critical view of the social distribution of the consolidation measures. While workers, families, and pensioners are being burdened, “the super-rich are once again spared,” said Volkshilfe Director Erich Fenninger in a press release. He viewed positively the fact that more resources are earmarked for mobile care services and additional funds for the women’s department and elementary education.