Austrian Finance Minister Magnus Brunner unveiled a €15 billion ($16.8 billion) austerity plan on Tuesday, spanning 2025 and 2026, aimed at reducing the state budget deficit.

Key Measures in the Austerity Package

1. Tax Increases & Fee Adjustments

• Higher corporate taxes for banks and energy companies

• Cuts to subsidy programs, including the climate bonus (saving €2 billion / $2.24 billion alone)

• Increased tobacco and gambling taxes

• Freeze on inflation-adjusted tax reforms (saving hundreds of millions)

2. Climate & Energy Subsidy Cuts

• Abolition of the Climate and Energy Fund

• End of electric vehicle purchase incentives

• Phase-out of the "Exit from Oil and Gas" program

• Gradual €200 increase in national climate ticket prices

3. Public Service Fee Hikes

• Higher passport issuance fees

• Increased health insurance contributions for pensioners (from 5.1% to 6%)

• Rise in electronic health insurance card fees

4. Pension & Labor Market Reforms

• Reduced early retirement options for long-serving workers

• Incentives to keep older employees in the workforce

5. Government Cost-Cutting Measures

• Reduction in official travel

• Postponement of IT projects

• Lower advertising budgets (without affecting jobs or diplomatic missions)

Uncertain Impact & Further Austerity Expected

While the package is comprehensive, its full impact on households and businesses remains unclear. Additionally, Austria’s regional governments will likely introduce similar austerity measures to address their own growing deficits.