Chancellor Christian Stocker (ÖVP) remains opposed to an EU deficit procedure despite the looming worse economic figures. “This remains the case,” he said on Friday in front of journalists. The currently planned savings requirement of 6.4 billion euros could still increase. However, Stocker hopes that defense spending may not fall under the Stability Pact. The first government retreat of the ÖVP, SPÖ, and NEOS on Tuesday will focus on the economy.
“If we get worse figures than expected in the economic forecast at the end of March, we will, of course, need to discuss how we handle it,” explained Stocker during his press conference. He also emphasized that Finance Minister Markus Marterbauer (SPÖ) had clarified on Thursday that wealth or inheritance taxes are not under discussion in this legislative period.
When asked whether more savings should be implemented or if the government should risk a deficit procedure, Stocker reminded that they had agreed to avoid a deficit procedure—”that remains the case.”
Marterbauer mentioned that the government would discuss new measures based on updated figures. However, any measures should not further harm the economy. Marterbauer would not speculate on a potential EU deficit procedure, stating that this is up to the European Commission.
Stocker is hopeful that European discussions might lead to defense spending being excluded or partially excluded from the Stability Pact, which could bring relief to Austria. However, this is “not yet finalized.”
Despite Europe’s military buildup due to Russia’s war in Ukraine, Stocker believes that a debate about Austrian neutrality “doesn’t bring anything”: Even if Austria were to abolish neutrality, which lacks majority support, “it wouldn’t change our security situation,” he pointed out. He believes that by equipping the military with 2% of GDP as planned in the government program by 2032, Austria would contribute to Europe’s overall defense.
Stocker remains calm about the trade war between the USA and Europe, stating that the debate will calm down once the effects of the tariff policies are clearer, adding that he expects the USA has no interest in escalating further.
On Tuesday, the three-party coalition will have a working retreat. The main focus will be the economy, with economists Gabriel Felbermayr (WIFO) and Holger Bonin (IHS) attending. Stocker emphasized that the goal is to align the economic policies, as the economy and location are major concerns for the new government.
Stocker is prepared to take legal risks regarding planned measures such as a headscarf ban for girls and a stop to family reunification for asylum seekers. He compared the situation to his work as a lawyer, stating that he wouldn’t have represented his clients if he only took cases he was certain of winning. He acknowledged that there’s a risk that some measures might be ruled unconstitutional but pointed out that such rulings often provide guidance on how to implement the measures legally.
The government also plans to examine the energy market. Stocker argued that energy price caps must end, as financial resources are not “available forever.” Instead of direct subsidies for energy costs, Stocker favors measures to prevent energy prices from threatening Austria’s economy. “We will address the energy market very soon during this period,” he promised.
Stocker feels that the government has been very active since its inauguration and is quickly moving into action. He mentioned policies like the rent cap, agreement on the family reunification ban, and relief package for small and medium-sized businesses. Although the title “Chancellor” is still unfamiliar to him, Stocker said that he is already comfortable in the Chancellor’s office.
To establish a conversation base with the FPÖ, with whom coalition talks failed, Stocker aims to secure constitutional majorities in parliament and is focused on addressing the concerns of FPÖ voters, who he believes share similar concerns with others in daily life.
