US EditionEU Puts Austria Under Budget Watch for Breaching Deficit Rules
- The European Commission placed Austria under the EU’s excessive deficit procedure on June 4, 2025, after the country breached deficit rules in Brussels.
- Austria exceeded the three percent of GDP deficit limit with a 4.7 percent shortfall in 2024, prompting the Commission to demand a corrective fiscal plan.
- Austria joins eight other EU countries, including France and Italy, facing increased oversight for spending that strains public finances amid inflation and rising interest costs.
- The Commission said the deficit procedure is warranted and noted Austria’s deficit forecast will only slightly improve to 4.4 percent in 2025, remaining above the threshold.
- This move signals sustained fiscal pressure on Austria and could lead to stricter EU monitoring or sanctions if it fails to submit an effective correction plan.
35 Articles
35 Articles
The European Commission intends to initiate criminal proceedings against Austria for too high a new debt. The country has an excessive deficit, the Brussels authority informed.
The EU Commission now wants to initiate criminal proceedings against Austria for too high new debt (see video above). The reactions of the parties are naturally different. While for the SPÖ "no end of the world", the FPÖ sees a "central promise" broken by the Dreierkoalition ... Finance Minister Markus Marterbauer (SPÖ) had already declared in the Federal Council last week that he had "no fear at all" before the deficit procedure.SPÖ: "It also b…
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Austria has been fighting the crises of recent years with government spending. Now the EU is responding.
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