Events for November
M T W T F S S
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
Add your event FREE

Today


Videos


Polls


Cosmo and Nanu - Hey Cool


Cosmo and Nanu

Federal_and_provincial_financial_issues_decision-makers_have_postponed_their_negotiations_about_the_budget_of_the_coming_years._Pictured:_VP_Finance_Minister_Maria_Fekter.

Finance minister determined about sanctions

Federal and provincial financial issues decision-makers have postponed their negotiations about the budget of the coming years.

People’s Party (ÖVP) Finance Minister Maria Fekter said talks with the provincial governments’ finance councillors would continue next week. Fekter angered the politically muscular provincial parliaments by revealing plans to sanction provinces which breached the stricter new budget rules.

The national government coalition of Social Democrats (SPÖ) and ÖVP plans to erase the structural budget deficit until 2017. Austria managed to lower its budget deficit from 4.5 per cent of the gross domestic product (GDP) in 2010 to just 2.6 per cent in 2011. The finance ministry feared that last year’s budget deficit make 3.9 per cent.

Fekter stressed yesterday (Thurs) she was still determined about issuing sanctions on provincial governments which left the agreed path of austerity. The federal government agreed with the leaders of the nine provincial governments a few weeks ago that the regions must contribute 5.2 billion Euros in additional spending reductions and increases of charges to the Austrian 26.5-billion-Euro budget consolidation package in the coming five years.

The finance minister made aware of stringent budget rules 25 of the 27 European Union (EU) members agreed upon while Upper Austrian ÖVP Governor called on Fekter to show more interest in a mutual agreement with the provinces. Fekter explained provinces which failed to keep their budgets in order could be issued a charge of 15 per cent of their deficits.

SPÖ General Secretary Günther Kräuter suggested that the provinces should be allowed to invest more than initially agreed in certain situations such as serious economic downturns. Kräuter said the growth of the Austrian economy must not be negatively affected by the general agreement to cut investments and act more efficiently.

Statistics reveal that the provinces’ average per capita debt soared from 2,360 Euros in 2009 to 2,735 Euros in 2010. Lower Austria had the highest per capita debt rate in both years (2009: 4,309 Euros; 2010: 4,806 Euros) while capital Vienna did best in 2009 with 1,103 Euros. The western province of Tyrol had the lowest per capita debt rate in 2010 (1,465 Euros), according to Bernhard Felderer’s National Debt Committee.

Austria’s public debts were as high as 72.2 per cent of its GDP in 2011. The EU average was 82.5 per cent while the 17 EU countries which are part of the Eurozone reported a debt rate of 87.2 per cent, up from 85.3 per cent in 2010.

Rating agency Standard & Poor's (S&P) downgraded Austria from AAA to AA+ due to its high debts in January. S&P’s competitor Moody’s confirmed Austria’s AAA but expressed concerns about the further development of the country’s economy. Fitch, the third-biggest rating agency in the world after S&P and Moody’s, reaffirmed Austria’s AAA last week.

Vienna Times





Related articles: political scandals

  1. EC warns debt-ridden Austria

    » General News 2012-05-31

    Austria has been criticised for its high public debts.

  2. Graz coalition collapses

    » General News 2012-05-31

    People’s Party (ÖVP) Graz Mayor Siegfried Nagl has ended his faction’s partnership with the Greens.

  3. FPÖ attacks Wrabetz

    » General News 2012-05-30

    ORF boss Alexander Wrabetz is under fire over his latest relocation calculations.

  4. Government's subsidisation reform suffers setback

    » General News 2012-05-29

    The government has failed to reach an agreement with the coalition concerning a reform of Austria’s party subsidisation system.

  5. Vienna road toll on the agenda again

    » General News 2012-05-22

    The Vienna Greens are risking a coalition-internal conflict by calling for a city toll.

  6. Hollande's growth appeal 'nonsense', says Fekter

    » General News 2012-05-22

    Austrian People’s Party (ÖVP) Finance Minister Maria Fekter has launched an attack on the new French president.

  7. Petrol traders plan legal action

    » Business 2012-05-17

    The domestic mineral oil industry plans to sue the government about plans to set up a tool regulating fuel prices.

  8. Turmöl sales soar

    » Business 2012-05-11

    Austria’s main discount petrol station network earned more in the first three months of this year thanks to the current developments on the energy products sector.

  9. SPÖ's big guns trained on Strache

    » General News 2012-05-02

    Vienna Mayor Michael Häupl has warned from a coalition between the People’s Party (ÖVP) and the Freedom Party (FPÖ).

  10. Bonuses must mean tax cuts, says ÖVP boss

    » General News 2012-05-02

    The People’s Party (ÖVP) has suggested to lower the tax pressure on companies which share their profits with employees.

Related articles: EU

  1. EC warns debt-ridden Austria

    » General News 2012-05-31

    Austria has been criticised for its high public debts.

  2. AUA under pressure as pilots quit

    » Business 2012-05-30

    The number of pilots and stewardesses leaving Austrian Airlines (AUA) because of the upcoming pay cuts is on the rise.

  3. Austrian skiers create overnight stay record

    » Business 2012-05-29

    The number of winter season overnight stays by Austrians has reached a new record.

  4. Pecik defends TA engagement

    » Business 2012-05-24

    Telekom Austria (TA) investor Ronny Pecik has declared himself a team player.

  5. FW turnover takes off

    » Business 2012-05-24

    Austria’s biggest airport has managed to increase its profit.

  6. Küng tackles Schüller group

    » General News 2012-05-24

    Another top-tier representative of the Austrian Church has warned the Preachers’ Initiative from consequences.

  7. AUA rules out Whitsun travel chaos

    » Business 2012-05-23

    The current conflict with the works committee does not negatively affect Austrian Airlines’ (AUA) booking figures, according to a spokesman.

  8. Hollande's growth appeal 'nonsense', says Fekter

    » General News 2012-05-22

    Austrian People’s Party (ÖVP) Finance Minister Maria Fekter has launched an attack on the new French president.

  9. Schönborn warns disobedient priests

    » General News 2012-05-18

    Viennese Archbishop Christoph Cardinal Schönborn is upping the pressure on Helmut Schüller’s Preachers’ Initiative.

  10. Austrians concerned about EU unemployment

    » Business 2012-05-18

    Joblessness is what worries Austrians the most, a poll regarding European issues shows.

Related articles: crisis

  1. EC warns debt-ridden Austria

    » General News 2012-05-31

    Austria has been criticised for its high public debts.

  2. Property prices keep climbing

    » Business 2012-05-31

    A real estate expert has expressed concerns about property prices in Austria.

  3. Graz coalition collapses

    » General News 2012-05-31

    People’s Party (ÖVP) Graz Mayor Siegfried Nagl has ended his faction’s partnership with the Greens.

  4. FPÖ attacks Wrabetz

    » General News 2012-05-30

    ORF boss Alexander Wrabetz is under fire over his latest relocation calculations.

  5. AUA under pressure as pilots quit

    » Business 2012-05-30

    The number of pilots and stewardesses leaving Austrian Airlines (AUA) because of the upcoming pay cuts is on the rise.

  6. TV tax increase ahead

    » Business 2012-05-30

    TV consumers in Austria must pay higher taxes from Friday.

  7. Pay cuts scare off AUA pilots

    » Business 2012-05-29

    Dozens of pilots have left Austrian Airlines (AUA) in the past weeks, according to the loss-making carrier’s works committee.

  8. Brauner discloses austerity course details

    » General News 2012-05-29

    Viennese Social Democratic (SPÖ) Finance Councillor Renate Brauner has revealed how the city government plans to save one billion Euros within the next five years.

  9. Austrian skiers create overnight stay record

    » Business 2012-05-29

    The number of winter season overnight stays by Austrians has reached a new record.

  10. Government's subsidisation reform suffers setback

    » General News 2012-05-29

    The government has failed to reach an agreement with the coalition concerning a reform of Austria’s party subsidisation system.


Tag cloud:
sanctions  billion  minister  Fekter  Euros  uter  auml  Ouml  agency  capita  Moody  agreement  Rating  Austria  rsquo  economy  national  governments  deficit  debt


Latest News

 

Mad About Mammoths At Vienna Museum
A unique exhibition in the Austrian capital Vienna has proved a massive hit after bringing together for the first time some of the most famous frozen woolly mammoth remains.

Spate of Crimes throughout Vienna and Lower Austria Solved
Four men have been arrested after committing 113 break-ins, 21 thefts and causing at least 260,000 Euros worth of damage.

Dad Punished Child, 2, With Boiling Hot Shower
A two-year-old girl is in an artificial coma and fighting for her life after her father threw her into a scalding hot shower leaving her with severe burns at the family home in the Austrian capital Vienna.

Police And Firemen Get Cold Turkey
Flipping the bird was given a new meaning in Austria this week when a truck filled with plucked turkeys overturned, closing a busy motorway in the process.

Halloween At The Zoo
Pumpkin pie might be the order of the day for people this Halloween but now zoo animals are also getting in on the act.

Baby Naked Mole Rats Born In Vienna
With their pink hairless bodies and fangs for front teeth, these baby naked mole rats were never going to win any cuteness contests at Schonbrunn Zoo in the Austrian capital Vienna.

Jihad Girls Gunpoint Retraction Of Desire To Go Home
Austrian anti-terrorism police believe that an interview given to a French magazine allegedly with one of the two teenage girls who fled to Syria to join in the jihad was probably carried out at gunpoint.

MEP caught In Brit papers Fraud Probe Jailed
A corrupt MEP caught by a British newspaper offering to propose amendments to EU laws in exchange for 100,000 euros a year has been given a three-year-jail term.

Vienna Jihad Girls Want To Come Home
The two Austrian teenage girls who became ‘poster girls’ for the jihad in Syria are now desperate to come home after getting completely disillusioned with their new lifestyles.

Viennese Jihad Girl May Have Been Killed
Austrian police say that one of the two attractive young teenage girls who fled the country to go to Syria to fight on the side of Islamic rebels may have been killed.

 


Rieders Digests


The most popular stories –
last 7 days