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Austrian Government Presents Double Budget 2018/19: EU Requirements Are Met - 2019 Balanced Budget

Published: February 28, 2018; 19:22 · (Vindobona)

The new Austrian government is planning a zero deficit for next year, Chancellor Sebastian Kurz (ÖVP) and Vice-Chancellor Heinz-Christian Strache (FPÖ) have announced. The planned reduction in corporation tax could be of interest to foreign investors and companies.

Austrian Government Presents Double Budget 2018/19 / Picture: © www.bundespraesident.at / Peter Lechner/HBF

The government confirms the self-imposed savings goals.

"The goal is a lean state so we can reduce the tax burden on working people," says Kurz.

Finance Minister Hartwig Löger (ÖVP) will hold his first budget speech in three weeks: on March 21, he will present the double budget 2018/19 in the National Council (Nationalrat).

The key points have already been determined by the ÖVP and the FPÖ at the government's meeting in January: the government wants to save 2.5 billion euros in order to be able to implement the EU budget guidelines (a "structural zero deficit" of no more than 0.5 percent of economic output).

In addition, Kurz and Strache announced a real zero deficit in 2019. "So this year the federal government should not spend more than it takes, despite the planned tax cuts of two billion euros", Kurz said. "That has been impossible for decades in Austria, this government will make it possible". Strache: "You can not spend more than you have, every housewife knows that."

Kurz speaks of "ambitious goals" because the government wants to create scope for the tax cuts promised in the election campaign, while at the same time cutting public debt "towards 60 percent" of GDP without introducing new taxes.

The ministers of have therefore received clear saving targets, because a massive savings in the size of 2.5 billion is planned to carry out a tax relief.

The planned reduction in corporation tax could be of interest to foreign investors and companies.