BRUSSELS (Chatnewstv.com) — The Eurogroup has acknowledged Austria’s submission of its draft budgetary plan for 2025 and 2026 but warned that the country remains in breach of the European Union’s deficit limits, prompting a proposed Excessive Deficit Procedure.
In a statement released Monday following its meeting, the Eurogroup welcomed Austria’s draft budget, submitted on May 13, alongside a medium-term fiscal structural plan. The European Commission had earlier issued its opinion on the plan on June 23, concluding that Austria failed to meet the bloc’s deficit criterion.
According to the Commission’s Spring 2025 forecast, Austria’s general government deficit reached 4.7% of gross domestic product (GDP) in 2024 and is projected to decline only slightly to 4.4% in 2025—well above the 3% threshold set under the EU’s Stability and Growth Pact.
“The Council is currently considering the Commission recommendation for a decision establishing the existence of an excessive deficit in Austria,” the Eurogroup said, adding that it is also examining the proposed corrective path and medium-term fiscal strategy for the country.
Despite the deficit breach, the Eurogroup agreed with the Commission’s assessment that Austria’s draft budget is generally in line with the Stability and Growth Pact. The forecasted net expenditure growth rates for both 2025 and 2026 are said to fall within the limits set in Austria’s fiscal plan.
However, officials cautioned that the evaluation for 2026 remains preliminary. “Given the exceptionally early assessment of the budgetary plans for 2026, the Commission intends to revisit its assessment later in the year, in light of its Autumn 2025 forecast,” the statement noted.
The Eurogroup urged Austrian authorities to be ready to take further action if needed and emphasized the importance of meeting fiscal obligations.
“We invite Austria to stand ready to take action as necessary and to deliver on its fiscal commitments,” the group stated.
The Eurogroup reaffirmed its commitment to continued monitoring and coordination of fiscal and economic policies across the euro area.
