As part of their coalition negotiations, the FPÖ and ÖVP have agreed on a massive austerity package to consolidate the budget. The total volume amounts to 6.4 billion euros. After initial restraint, more and more details about the planned measures are becoming known, but the abolition of the climate bonus and the educational leave are already confirmed.

Cuts in Social Benefits

Another central austerity measure involves the suspension of the automatic valorisation of social benefits. This was introduced just three years ago along with the abolition of cold progression. The suspension is expected to bring annual savings of about 150 million euros. So far, these benefits have been adjusted annually for inflation, most recently by 4.6 percent in January 2025.

Changes in Unemployment Benefits

The additional earnings limit for unemployment benefits is to be significantly reduced. Currently, unemployed people can earn up to the marginal earnings limit of 551.10 euros (as of 2025) per month. The planned reduction aims to get people into full-time employment more quickly.

Pension Cuts and Further Measures

The future government apparently also plans to suspend the revaluation of pension accounts. While this measure will hardly be noticeable in the short term, it means significant financial losses for future pensioners. In addition, an expansion of the tobacco tax to e-cigarettes and snus is planned. More precise details about the planned austerity measures will be presented on Thursday.

(Red)

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