Finance Minister Markus Marterbauer (SPÖ) plans to expand efforts to combat fraud as part of Austria’s budget consolidation. In an interview with APA, he announced legislative changes targeting VAT carousel fraud, among others, and intends to ramp up inspections. Regarding the country’s budget goals, Marterbauer remains optimistic, though he wouldn’t be surprised if Austria’s credit rating is downgraded further by rating agencies.
In June, Fitch downgraded Austria’s long-term rating from “AA+” to “AA” with a stable outlook. Marterbauer doesn’t believe the move is linked to the EU’s looming deficit procedure. Rating agencies assess macroeconomic and budget developments in detail regardless: “They don’t need anyone to point it out.” He added that the deficit procedure itself had “absolutely no effect on financial markets” and anticipates other agencies may follow Fitch due to rising national debt.
Marterbauer sees the EU deficit procedure as relatively benign: “There are no specific recommendations or advice.” He considers it more of an “information exchange instrument,” saying: “We would have done the same with or without it.”
Budget Outlook and Economic Concerns
The minister believes the target deficit of 4.5% of GDP for 2024 is “realistic,” though it depends on economic performance. Some research institutes, like Wifo, expect a better result at 4.1%. Marterbauer calls that projection too optimistic, noting Wifo’s earlier forecast of 3.3% for 2025 was “far from reality.”
He hopes Germany’s large investment package will boost Austria’s economy, helping the budget in turn: “The German package will help us a lot.” Nationally, however, Austria has little room for major economic stimulus: “We’re investing quite a bit within the savings package, but beyond that, we have little room because we must save.”
He remains “fairly optimistic” about domestic demand: “It seems consumer demand is stabilizing.” The savings rate is falling, but unemployment remains too high.
Fighting Fraud, Reform Plans, and Local Debates
Marterbauer plans to raise around €270 million in 2025 through anti-fraud measures. A task force is currently drafting concrete actions. Efforts will include new legislation—especially around VAT carousel fraud—and more audits. Many businesses haven’t been inspected in recent years, he said, and “we need to send a signal.”
Discussions are ongoing about Austria’s internal Stability Pact, which limits regional debt. Marterbauer sees consensus that “everyone must save,” but the poor starting position makes firm commitments difficult. Only budget targets—not specific measures—should be defined, he said.
The Association of Municipalities has pushed for measures such as an ambulance fee or a higher property tax. On the latter, Marterbauer is open to discussion: “If municipalities come with a joint model, we’re open to reviewing it.”
Aging Workforce and Pension Issues
Recently, Marterbauer suggested a bonus/malus system to encourage older people to stay in the workforce. He emphasized it was a proposal, not a demand, and distanced it from the “flat-tax” measure meant to offer tax breaks for working beyond retirement age: “That’s a proactive measure pushed by a coalition partner, and we’ll implement it—but we’ll be very careful about its costs and distributional effects.”
The new partial pension scheme has already passed Parliament. However, rules for civil servants remain pending. While unions have made demands, Marterbauer said he’s open to talks—but made no promises: “We haven’t discussed it yet, but it clearly must not cost more.”
