Austria Tightens Belt with Tax Hikes and Billion-Euro Cuts
Austria is moving towards a tighter budget after the governing coalition agreed on the basic parameters of its 2027 and 2028 budgets, including an increase in corporate income tax and an extension of the bank levy. The measures are intended to strengthen state revenues, according to Vice Chancellor Andreas Babler.
The government has also committed to significant spending cuts. It aims to save around 2.5bn euro in 2027 alone, with total savings over the two years exceeding 5bn euro. Chancellor Christian Stocker described the agreement as a balanced compromise between fiscal consolidation and preserving stability.
The concrete measures are not yet final and will be presented in June. The combination of higher taxes and spending cuts points to a more challenging fiscal period ahead for Austria.