1 April 2025 | Euro

Austria's finance minister admitted inevitability of exceeding budget deficit limit

Austria's finance minister admitted inevitability of exceeding budget deficit limit

Austria's budget deficit reached 4.7% of GDP last year, significantly exceeding the 3% limit set by the European Union. As Bloomberg notes, the country is facing serious economic difficulties, having to revise its fiscal policy.

Federal Minister of Finance Markus Marterbauer emphasized the impossibility of rapid reduction of the deficit to the target figures without significant damage to the economy and employment. Given the projected third year of economic recession, Austrian government is planning to present a two-year budget by May this year, which implies a gradual reduction of expenditures.

Austrian authorities have decided to abandon attempts to avoid EU sanctions on excessive deficits, recognizing the need for fiscal discipline. While sticking to the initial 6.4 billion euro ($6.912 billion) savings plan, they intend to develop a new medium-term plan for sustainable budget cuts. Thus, the government seeks to strike a balance between fiscal responsibility and maintaining economic activity in the midst of a prolonged recession.

Gold sell
Period: 31.10.2026 Expectation: 3000 pips
Gold sell-off targets $4,000
18 September 2026 20
Period: 30.11.2026 Expectation: 5700 pips
Selling USDJPY down to 150.00
18 September 2026 17
Period: 30.09.2026 Expectation: 1500 pips
Invest in GBPUSD up to 1.36270
17 September 2026 30
Period: 15.10.2026 Expectation: 1000 pips
Selling SPX down to $7,490
16 September 2026 47
Brent sell
Period: 15.10.2026 Expectation: 800 pips
Brent crude sell-off targets $95.80
16 September 2026 31
Gold sell
Period: 31.10.2026 Expectation: 18000 pips
Go short on gold upon breaking $4,300
15 September 2026 55
Go to forecasts