The Austrian National Council approved a double budget for 2027 and 2028 in July 2026, following tax and austerity packages passed by the OVP/SPO/Neos coalition. Finance Minister Markus Marterbauer is set to succeed Andreas Babler as the Vice Chancellor.
Austria faces an EU excessive deficit procedure after its 2025 deficit hit 4.1 percent of GDP. The EU Council mandates nominal net expenditure growth stay below 2.2 percent, though defense is exempt. A budget amendment for 2028 is scheduled for autumn 2027.
To reach the 2028 target of under three percent debt, the Fiscal Council estimates 5.7 billion Euro in savings are needed. While the central bank forecasts a lower requirement, these measures are critical before the next National Council election in 2029.
