Austria on Course for a Digital and Sustainable Era in Europe

Chancellor Christian Stocker emphasized that numerous measures had been initiated over the past four months. “We want to deliver on what we promised: to do what is right for Austria,” said Stocker. He stressed the importance of the reform partnership between the federal government, the states, cities, and municipalities as crucial for implementing necessary reforms.

Vice-Chancellor Andreas Babler emphasized that the government had taken responsibility and quickly found solutions to the major challenges. He referred to the temporary increase in the stability levy on banks amounting to 500 million euros per year and the rent freeze for the regulated housing market, which will save Austrians 138 million euros in rental costs this year. “We are thus laying the foundation for economic recovery,” said Babler. Foreign Minister Beate Meinl-Reisinger spoke of a clear willingness to finally tackle reforms and overcome acute crises at home and abroad. She highlighted the planned central contact point for debureaucratization and deregulation, as well as the updating of the security strategy.

Extensive reforms and initiatives underway

In recent months, the federal government has embarked on a number of projects designed to advance the country in various areas. These include, among others: Fiscal policy: The 2025/2026 double budget with a consolidation of around 15 billion euros, an increase in the bank levy, and the extension of the energy crisis contribution until 2030.

An industrial strategy, the Municipal Investment Act for municipalities, an international opportunity package for internationally active companies, and a labor market package to combat the shortage of skilled workers. The introduction of an industrial electricity bonus, skills checks to promote training and further education, and the “Made in Europe” bonus for photovoltaic systems are also part of the offensive.

The rent freeze, the price cap on prescription fees, the introduction of the maintenance guarantee fund, and a pension reform with concessions for working in old age. From 2026, nursing care will be classified as heavy labor.

A massive reduction in illegal migration and asylum applications, a halt to family reunification since July 3, 2025, the introduction of a hate preacher register, and a ban on marriages under the age of 18 and cousin marriages. A mandatory integration program and a doubling of resources for German language instruction in schools are also planned.

An elementary education training offensive with 4,000 new training places, a debureaucratization offensive in schools, the introduction of digital student ID cards, and the relaunch of ID Austria.

Austria as a digital pioneer in Europe

In its third country report on the status of the Digital Decade, the European Commission attests to Austria's significant progress. With 85 measures and over €4 billion in investments, Austria is one of the most committed member states on the path to achieving the EU's digital goals by 2030. State Secretary Alexander Pröll emphasized the goal of becoming one of the top three digital nations in Europe.

Austria is one of the first member states to meet the EU's 2030 target of 100 percent access to secure eID. With 99.55 percent near-universal 5G coverage, Austria is one of the European leaders. 20.3 percent of companies already use artificial intelligence, well above the EU average. Austria continues to perform solidly in the provision of digital public services and ranks seventh in Europe in the current eGovernment Benchmark 2025 with 83 points. The country is particularly strong in mobile user-friendliness, support for use, and electronic payments across national borders.

Austria wants to expand the integration of advanced technologies such as cloud and data analytics in SMEs, promote start-ups, and increase the digital participation of citizens. The use of green-digital synergies and increasing the proportion of ICT specialists are also on the agenda. A special Eurobarometer survey on the Digital Decade shows that 87 percent of Austrians consider combating fake news and disinformation on the internet to be important, and 68 percent believe that the digitization of public and private services makes their lives easier.

The federal government is confident that the measures it has introduced will put Austria on a successful course and equip the country for future challenges. The government also wants to do this in Europe and is therefore relying on multi-layered European diplomacy.

Austria's role in Europe and the world

In recent weeks, Chancellor Stocker has held intensive talks with the heads of government of key EU states, including French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni. These meetings underscore Austria's ambition to play an active role in a strong and sovereign Europe.

Stocker strengthened relations with France during a working lunch at the Élysée Palace, where he discussed key European and international issues with President Macron. The discussions focused on economic competitiveness, the EU's multiannual financial framework, security and defense issues, the war in Ukraine, and the situation in the Middle East. Stocker emphasized the close bilateral relations and similar priorities of both countries in areas such as competitiveness and multilateralism. France is Austria's eighth-largest trading partner worldwide in 2024 and an important export destination. Both countries support the EU's enlargement to include the Western Balkan states, as this is geopolitically essential to avoid instability.

Stocker emphasized that the EU's competitiveness is crucial. “For far too long, we have outsourced innovation to America and production to Asia – in Europe, we have only retained the regulations. This is not sustainable in the long term,” said the Chancellor. With regard to the multiannual financial framework, Stocker called for a powerful and efficient EU budget that does not necessarily require more money, but rather a more targeted use of every euro. As a net contributor, Austria will continue to advocate for an appropriate and fair contribution key and keep a close eye on programs such as Erasmus+, Horizon, and the Common Agricultural Policy (CAP). The proposed abolition of the two-pillar model of the CAP is problematic for Austria's small-scale agriculture.

In the area of security and defense, Stocker reiterated that Europe must do more for its security in the future. The Austrian federal army budget is to be increased to 2 percent of GDP by 2032. According to Stocker, Austria and France are “pulling in the same direction” on migration issues, particularly with regard to the need for repatriation and a safe third country concept. He referred to the recent successful deportation of a criminal to Syria – the first since 2011.

Relations with Italy were emphasized in Rome at a working lunch with Italian Prime Minister Giorgia Meloni, as were the close friendship and economic partnership. Italy is Austria's second most important trading partner. Both countries see potential in the energy sector, for example, in LNG terminals and the planned “South H2 Corridor” for green hydrogen. In the customs dispute with the US, both agree to respond as a united EU.

Stocker also coordinated with Italy on migration issues and called for the full implementation of the asylum and migration pact, as well as innovative solutions such as return centers and safe third country concepts. With regard to the Western Balkans, both countries reaffirmed their role as driving forces behind the “Friends of the Western Balkans” initiative to create concrete benefits for the region and offer credible prospects for EU accession.

On the Brenner transit, Stocker called for the rapid commissioning of the Brenner Base Tunnel and a transnational “digital slot system” to control truck traffic. He welcomed the progress made in revising the autonomy statute for South Tyrol as “extremely gratifying.”

Federal Chancellory of Austria