Budget gap to hit 4.5 percent, students gain access to council housing, and Vienna police seize 150kg of rotten meat – plus more stories from Austria on Friday.

Austria forecasts 4.5 percent budget deficit in 2025

Austria’s Ministry of Finance has forecast a general government deficit of 4.5 percent of GDP for 2025, likely triggering an EU excessive deficit procedure. ORF reported that the estimate, sent to Statistics Austria on Thursday, exceeds the EU’s 3 percent ceiling and reflects ongoing economic weakness, higher interest costs, and rising expenditures.

Federal government spending is expected to account for 3.5 percentage points of the deficit, with federal states and municipalities contributing the remainder. 

Finance Minister Markus Marterbauer (SPÖ) confirmed the government will pursue a consolidation package worth €6.4 billion this year, increasing to €8.7 billion in 2026. Opposition parties NEOS, FPÖ and the Greens all criticised the government’s approach, albeit from different angles – ranging from insufficient reform to fears of misguided austerity.

Greens push for vacancy tax and city-run rental platform

The Vienna Greens are renewing calls for a vacancy tax to tackle long-term empty flats, paired with a public platform to manage rentals. Der Standard reported that top candidate Judith Pühringer unveiled the proposal in front of a symbolic vacant property in Hernals, accompanied by an inflatable “real estate shark.”

The plan proposes escalating penalties for speculative vacancies: from half the guideline rent in year one to double by year three. 

A new city platform would handle letting, rent collection, and even maintenance, providing an “all-round carefree package” to hesitant landlords. One-third of units let through the platform would support the Housing First programme for formerly homeless individuals.

Council housing campaign targets students in Vienna

Starting in May, students in Vienna will have special access to up to 1,000 municipal flats without having to prove an urgent housing need. ORF reported that the units – ranging from 35 to 45 square metres – will be allocated until the end of September via the Wohnberatung Wien platform.

Housing Councillor Kathrin Gaal (SPÖ) said the initiative is part of a broader effort to make affordable housing accessible to younger residents. 

From May 1st, the city will also simplify address registration rules for council housing applications, removing a restriction on single-address registration.

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WKO warns of funding gap for apprenticeships

The Austrian Economic Chamber (WKO) has called on the federal government to lift the €280 million cap on apprenticeship subsidies. ORF reported that the chamber expects a funding need of €316.5 million in 2025 and €330 million in 2026. 

They argue that failing to meet these needs could lead to companies discontinuing their apprenticeship programmes.

WKO officials warned that this would ultimately cost the government more, as other training pathways are more expensive and apprentices have better post-training job outcomes. They are urging the government to prioritise vocational education, even amid broader budget tightening.

Four and a half years in prison for stone attack and robberies

A 31-year-old man who threw a stone through the window of a moving streetcar, injuring a passenger, has been sentenced to 4.5 years in prison. ORF reported that the man also committed three robberies in February, threatening employees at a drugstore and petrol station while masked and pretending to be armed.

The man claimed the outburst was linked to personal debt and addiction, saying he “freaked out” under pressure. 

He accepted the court’s verdict, which included treatment recommendations following his release.

Four-year-old forgotten on the Grünberg in Gmunden

A four-year-old boy was accidentally left behind by his hiking group at the Grünberg cable car station in Gmunden. ORF reported that the group – consisting of four adults and nine children – took the last train to the valley before realising the child was missing.

The boy had been playing on a playground when the group descended. He was found crying by another hiker and cared for until police were contacted. 

Officers then brought him down safely and reunited him with his mother.

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150 kilograms of spoiled lamb meat seized in Vienna

Authorities in Vienna-Favoriten confiscated 150 kilograms of lamb meat stored in a car trunk and a cellar under dangerous conditions. ORF reported that the meat originated from Sopron in Hungary, a restricted zone due to foot-and-mouth disease. 

Temperatures in the storage areas exceeded 28C.

The suspect, registered with the Public Employment Service (AMS), faces charges for illegal trade, health violations, energy theft and social fraud. The meat was disposed of by Vienna’s emergency task force.

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