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Austria Threatens Veto on USD2.2T EU Budget Over Staff Hikes

(MENAFN) Austrian Chancellor Christian Stocker warned Monday that Austria could block the European Union’s next long-term budget, putting unanimity at risk for a €1.985 trillion ($2.226 trillion) spending plan.

The leader of the Austrian People’s Party (OVP) laid down the marker in an interview with a German daily newspaper. “There is a pain threshold for Austria. If this pain threshold is exceeded, I will not agree.”

Stocker stopped short of saying where Vienna’s “pain threshold” sits. He did stress, however, that “a compromise will only be possible if the new proposal is realistic.”

His sharpest criticism targeted the European Commission’s request for 2,500 additional civil service posts, which he branded “completely unreasonable and out of touch with reality.”

“We are cutting 2,600 administrative positions in Austria,” the chancellor said, adding that he expects EU institutions to follow suit. Should future staff reductions rein in bureaucracy, Stocker said, he would welcome that outcome.

The pressure on Brussels is sharpened by Austria’s own position: the country is under an EU excessive deficit procedure and must consolidate its finances. Stocker said that gives him every reason to expect fiscal discipline and efficient use of resources from the EU.

The stakes are high because the bloc’s financial framework for 2028 through 2034 requires unanimous approval from all member states. The European Commission has proposed a total of €1.985 trillion ($2.226 trillion) for the seven-year period.

Austria is not alone in resisting the plan. Germany, the Netherlands, Finland, Sweden and Denmark have also voiced opposition.

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