Budgethearing: Statement by EcoAustria Director Monika Köppl-Turyna for NEOS
Vienna, November 10, 2023: In mid-October, Federal Finance Minister Magnus Brunner presented the draft budget for the coming year 2024. Today, EcoAustria Director Monika Köppl-Turyna commented on it in parliament on behalf of the NEOS.
The economic research institute EcoAustria is particularly concerned about the continuation of Austria's debt policy until 2027. The strategy report shows high budget deficits and a stable debt ratio for the next four years, with no clear prospect of a turnaround. The failure in the past to take necessary precautionary measures in economically favorable times reduces the budgetary room for maneuver in the event of future crises.
The biggest budgetary challenges in Austria include financing pensions and demographic change. EcoAustria Director Monika Köppl-Turyna emphasizes that: "merely raising the de facto retirement age is not a sustainable solution; instead, an adjustment to the statutory retirement age is required." In addition, the rising interest burden and the lack of preparation for it are having a negative impact on Austria as a business location.
Furthermore, the discussion surrounding the introduction of a wealth tax should be met with skepticism from an economic perspective, as no lasting positive effects can be expected without accompanying structural reforms. Köppl-Turyna emphasizes the need for reform in areas such as education, healthcare and bureaucracy.
Austria will only remain competitive in the long term if progress is made, for example, in reducing bureaucracy and the burden on the economy, but also in the faster expansion of non-fossil energy sources and energy grids.
The establishment of the Future Fund is an important step towards securing the necessary investments in areas such as care and elementary education. However, the associated expenditure must be checked to ensure that it achieves its objectives and must be safeguarded by strict sanctioning mechanisms. Otherwise, there is a risk of non-transparent and inefficient use of taxpayers' money by local authorities.
What is urgently needed is a major structural reform of financial equalization in the form of a reallocation of tax competencies. "Increasing the fiscal autonomy of local authorities, for example, would ensure more efficient use of tax money. More spending discipline is absolutely necessary in view of the enormous burdens caused by demographic change," emphasizes Köppl-Turyna.
The increase in the budgets for universities and additional funds for security, justice and violence prevention is pleasing.
Finally, EcoAustria Director Monika Köppl-Turyna warns of the "lack of scope for relief and a balanced budget with a focus on transforming the economy and competitiveness".
