Austria’s budget may fail to address structural issues

Significance

The budget relies on optimistic economic projections to justify its mix of expenditure and tax cuts to generate a surplus.

Impacts

• Despite his pro-European line, Chancellor Kurz is unlikely to support more integrationist euro-area reform proposals.
• The lifting of the smoking ban in restaurants will have little to no effect on economic growth.
• The government’s tough stance on migration means immigrants may struggle to find jobs, despite the buoyant mood on the labour market.