On Thursday afternoon, budget consolidation took its next parliamentary step in the National Council. A measures bill was passed that includes, among other things, an increase in health insurance contributions for pensioners and a substantial rise in federal fees. Finance Minister Markus Marterbauer (SPÖ) rejected opposition allegations that the consolidation disproportionately burdens lower incomes.
The package contains a number of measures, of which the increase in health insurance contributions for seniors has attracted the most criticism. Specifically, they will rise from 5.1 percent to 6 percent. In return, the prescription fee (currently €7.55 per package) will be frozen next year. In addition, medications costing less than the prescription fee will in future count toward the fee cap, which is to be gradually reduced from 2 percent of annual net income to 1.5 percent between 2027 and 2030.
Criticism from Greens and FPÖ
At this point, Green MP Ralph Schallmeiner intervened. He argued that the relief comes, first, too late and, second, is financed by those affected through the increase in the e-card fee. FPÖ MP Alexander Petschnig denounced the package as a simple burden on the masses—“loveless tax and fee increases designed to hit the majority of the population.”
Indeed, the fee increases are considerable. For example, the cost of a passport will rise from €75.90 to €112. The fee for an identity card will increase by over 48 percent to €91. A driver’s license will cost €90, and vehicle registration will cost €178.
No Social Imbalance, Says Marterbauer
Greens and FPÖ pointed to a parliamentary budget office study showing that the lowest income decile is three times more affected by the measures than the highest decile. Marterbauer countered that the office could only assess measures directly attributable to individuals, thus excluding offensive measures like expanded German-language support, the opportunity bonus, or increased maintenance guarantees. He emphasized that these initiatives have positive distribution effects. The SPÖ also highlighted planned tax increases on private foundations.
Overall, Marterbauer expressed confidence that the necessary consolidation would succeed and predicted that economic forecasters would soon revise their projections upward rather than downward.
NEOS MP Karin Doppelbauer assured that a sound social state will continue in the future. She pointed out that by 2029 alone, there will be a €40 billion pension gap and debt will have grown to 86 percent of GDP, underscoring the need for savings. She described the current steps as the beginning of a major reform agenda. The ÖVP once again rejected opposition accusations; budget spokesman Andreas Hanger reminded that all parties at all levels of government share responsibility and should support concrete progress.
