It is now more likely that a government of these two parties "will have to consolidate even more strongly than before on the expenditure side," Felbermayr said on the sidelines of a press conference with the Pension Funds Association.

FPÖ and ÖVP Against New Taxes

Both the FPÖ and the ÖVP reject new taxes. In the previously failed negotiations between the ÖVP, SPÖ and NEOS, SPÖ leader Andreas Babler had still demanded a gift and inheritance tax.

In addition, Felbermayr expects that efforts will be made quickly to avert an EU deficit procedure. "This means that significant savings will have to be achieved as early as 2025," said Felbermayr. Without a deficit procedure, Austria would have to save 6.3 billion euros. "The climate bonus will certainly be part of this," said Felbermayr. Because the abolition of this alone would save just over 2 billion euros.

More Will?

A reform of the educational leave and savings on various subsidies are now more likely, Felbermayr said without naming specific promotions. He believes it is quite feasible to raise the necessary billions for the savings. "The will to do so is probably higher in the constellation that is emerging than it was before," said Felbermayr.

In the long term, a reform of the pension system and a strengthening of company pensions are also important in order to plug the budget hole, said the Wifo chief. Because the contributions to the state pensions from the federal budget are growing every year. At the same time, weak economic growth is burdening the system. This increases the pressure on politicians to expand funded company pensions - regardless of which party is currently in power.

(APA/Red)

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