The Stability Programme for the period 2008-2013 submitted by Austria shows that Austria in particular suffers due to the decrease in foreign trade and the collapse of the financial operations in Central and Eastern Europe. The economic support programmes implemented by Austria in her fight against the financial and economic crisis amount to ca. 1 ¼ % of GDP in 2009 and to ca. 1 ¾ % of GDP in 2010. From a politico-economic point of view, the Austrian measures are assessed by the Commission as both adequate and in time. The Commission, however, is concerned that a large part (85 %) of the stimulus measures are based on long-term sustainability and that the Austrian Stability Programme does not provide for any significant consolidation before 2013. The Commission therefore fears gaps in Austria’s public finances. Starting from a very low budget deficit of 0.4 % of GDP in 2008, a rise to 3.5 % of GDP is expected for this year. A budget deficit of 4.7 % of GDP has been forecast for the period 2010 to 2012; in 2013, the budget deficit is expected to decrease to 3.9 % of GDP.

Even if at this stage of the examination no deficit procedures against Austria have been announced, the recommendations of the Commission nevertheless give a clear message. Austria has been asked:

• to implement the stimulatory measures as planned and to reverse the expansionary fiscal course as soon as the economic crisis has been overcome,
• to substantiate the government’s intention included in the programme to consolidate the budget before 2012,
• to further improve the budgetary framework to strengthen budgetary discipline at all levels of government through more transparency and accountability.

Further information:

Press release of the Commission

Recommendation of the Commission on the updated stability programme of Austria