Austrian Minister Defends Budget, Calls Education Cut Fears 'Panic-Mongering'

Austrian Minister Markus Marterbauer has defended the government's budget, which allocates 35 billion euros for pensions and 20 billion for education and research. He asserted that the balance is appropriate, acknowledging the large number of pensioners who deserve security in their old age while also emphasizing investment in education and research.

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The pensioners do not receive the full compensation for inflation, that is organized out of solidarity, but I stand by the fact that we have a very good pension system in international comparison.

Addressing concerns about pension sustainability, Marterbauer stated that while pensioners will not receive full inflation compensation, this is a "solidarity" measure. He maintained that Austria possesses a strong pension system by international standards, calling it an asset rather than a disadvantage. The minister highlighted ongoing reforms, including saving 2.5 billion euros by 2029, to stabilize government contributions as the baby boomer generation retires. He also pointed to restrictions on early retirement as significant reforms.

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We are saving 2.5 billion euros by 2029, because we know that we want to keep the federal contribution to pensions as stable as possible during this phase when the baby boomer generation is retiring.

Marterbauer rejected the idea that raising the retirement age to 68 for everyone, as proposed by the Federation of Austrian Industries, is necessary. He cited pension expert Christine Mayrhuber, who advocates for a differentiated approach due to varying life expectancies, and called the proposal a "provocation."

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A retirement age of 68 for everyone, as proposed by the president of the Federation of Austrian Industries, would be rejected by real pension experts. I also reject it and consider the proposal a provocation.

Regarding education funding, Marterbauer dismissed warnings from university rectors about significant job losses as "panic-mongering." He stated that overall investment in education, particularly early childhood and primary education, is increasing. University budgets, he claimed, are being kept at a record constant level. Marterbauer acknowledged that a constant budget in real terms means less funding due to inflation but highlighted a 25% real increase in university budgets from 2018 to 2026, suggesting that while positive, these increases may have led to inefficiencies. He clarified that this is not "slashing" budgets but rather a necessary adjustment during a period of fiscal consolidation.

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This is pure panic-mongering. Anyone who looks at the budget for just a minute knows that we are investing significantly more in education overall, especially in early childhood education and primary schools.