Retirees face €8.4 billion in pension cuts under new austerity budget
Pensioners' Groups Slam Budget Cuts as Coalition Talks Drag On
Ongoing budget negotiations prompted senior advocates on Sunday to speak out against austerity measures at the expense of retirees, warning they must not be treated as the "nation's ATM" or a "pawn in budget poker." Ingrid Korosec (ÖVP), president of the Senior Citizens' Federation, and Birgit Gerstorfer (SPÖ), head of the Pensioners' Association, issued separate but aligned statements as coalition talks between the ÖVP, SPÖ, and Neos continued.
"Full Pension Adjustment for All"
In a press release, Korosec cited Parliament's Budget Office, which found that retirees would contribute roughly €8.4 billion to fiscal consolidation through reforms such as the new partial pension scheme, changes to the corridor pension system, higher health insurance premiums, and capped pension adjustments. She called this a "colossal burden" and reiterated demands for a "full pension adjustment for all."
Gerstorfer echoed these concerns, singling out the Neos for criticism. The party reportedly seeks to cut €4.5 billion from pensions—far exceeding the initially projected €2.5 billion—while simultaneously pushing for reduced payroll taxes for businesses. "This is nothing short of brazen clientelism at the expense of those who built this country," Gerstorfer said.
Battle Over Savings Targets in Two-Year Budget
Over the weekend, senior figures from the coalition parties remained locked in negotiations over the 2027–2028 double budget. An announcement on the scale of consolidation measures is expected early this week, possibly as soon as Monday. At minimum, an additional €2 billion will be required to stay on the fiscal path—though the final figure depends on how many new spending initiatives must also be funded.
Only once the total savings volume is set will individual ministries learn their constraints. They will then have until Finance Minister Markus Marterbauer's (SPÖ) budget speech on June 10 to reach agreements with the Finance Ministry.
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