Overview

• The European Commission has proposed opening an excessive deficit procedure against Austria after its budget shortfall reached 4.7 percent of GDP last year.
• The procedure aims to compel Vienna to align its fiscal policy with the EU’s 3 percent deficit ceiling and 60 percent debt-to-GDP threshold.
• Brussels will next collect statements from the Economic and Financial Committee before advising EU finance ministers on specific deficit-reduction recommendations.
• Austria faces one of the bloc’s weakest economic outlooks with EU forecasts predicting the country’s only contraction in 2025.
• Vienna has pledged to cut €54 billion in state spending by 2029 as part of measures to rein in its public finances.