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Vienna, 15 December 2011 : Fekter: "We are putting together an austerity package and not a tax package" Initial overview before Christmas – Package should be ready in early January and approved in February
Finance Minister Dr. Maria Fekter has rejected speculation over tax
increases forming part of Austria's austerity package. "We are putting
together an austerity package through which we aim to save around two
billion euro in the coming year – and not a tax package," stressed
Fekter. The austerity package is to be ready by the beginning of
January, and Fekter expects to have an initial overview before
Christmas.
"We need reforms and structural changes taking us on a long-term
austerity path. Just scraping together money over the short term is not
enough," declared Fekter. "Through reforms, we will be able to start
making considerable savings next year already, for instance through
positive measures to curb early retirement and abolish golden
handshakes. That could take effect as early as next year," added the
Minister.
Fekter also spoke in favour of savings at the Austrian Federal
Railways (ÖBB) and also announced changes in subsidy guidelines in order
to make the subsidy jungle more transparent. Fekter expects further
savings through a new public service law for newly-qualified teachers,
which is to apply already to new recruits in the next school year. Dr
Fekter is sticking to her proposal, according to which teachers "work
one third more" and in return receive higher entry salaries. In view of
the upcoming wave of teacher retirements, the Minister anticipates a
"huge dynamic" through this measure.
"The broad outlines of the package should be ready by the beginning
of January, but I hope that an initial overview will be ready before
Christmas. Details and adjustments will follow, and I anticipate that we
will be able to adopt the austerity package in February," concluded
Fekter.
