Austria's Bold Move: A Two-Year Budget to Secure Stability Before 2029 Elections
Austria's government is set to vote on a two-year budget this summer, covering both 2027 and 2028. The move breaks from tradition by approving financial plans two years in advance rather than one. Officials say the change will help secure stability before the coalition's term ends in 2029.
The decision comes as the country prepares to exit the EU's excessive deficit procedure. It also aims to strengthen financial planning ahead of key negotiations and elections.
The early budget vote is expected to pass smoothly, with all three coalition parties already in agreement. Normally, the finance minister's budget speech takes place in late autumn, but this year it has been moved to early July. Concrete talks on the double budget will begin shortly.
One official reason for the shift is Austria's planned exit from the EU's deficit procedure. A longer-term budget is also meant to improve financial predictability. Unofficially, the move may help calm internal tensions within the SPÖ party.
Strategically, the decision could weaken states' bargaining power during upcoming federalism reform talks. By locking in spending plans early, the government can more easily reject demands for extra funding. Some regional leaders hope the timing will delay debates over cuts until after the 2027 state elections, reducing political risks.
If approved, the 2027 budget could simply be extended into 2028, allowing the coalition to avoid a fresh vote in an election year. This would effectively secure funding until the end of the legislative term without further negotiations.
The double budget for 2027–2028 will be finalised by summer 2026. It marks the coalition's last regular financial plan before the 2029 elections. So far, the only confirmed change is a 50% funding increase for the state's space cluster in 2027.
