Leaked Austrian Budget Plan Proposes Deep Cuts to Universities, Railways, and Agriculture

Universities Anticipate a Billion-Euro Gap

Brigitte Hütter, president of the Universities Conference (uniko), made the scale of the reduction clear: “Das ist ein Minus von knapp 14 Prozent,” she said. “Wir werden das nicht hinnehmen und kämpfen. Unser Anteil am Gesamtbudget liegt bei lediglich vier Prozent, insofern ist ein derartiger Einschnitt nicht nachvollziehbar.” She described the proposal as an “Offenbarungseid für den Stellenwert der Wissenschaft und Forschung.”

Hütter detailed the practical consequences: “Wir können 10.000 Stellen nicht mehr nachbesetzen, das bedeutet eine Kürzung des Personals um ein Fünftel.” The student-to-staff ratio would worsen again, she said, and study times would lengthen.

University of Vienna Rector Sebastian Schütze did not mince words either. “Das ist nicht Kosmetik, da geht es an die Substanz,” he said, adding that it would involve “radikalen Personalabbau auf allen Ebenen” and a “gigantischen Reputationsschaden.” Schütze pointed out that Austria’s universities had recently improved their international standing, and argued the government was going in the wrong direction: “Die EU-Kommission verdoppelt Forschungsausgaben, wir kürzen sie. Die Unis sollen vielmehr Teil des Konjunkturpakets sein.”

Jens Schneider, Rector of TU Wien, stressed the universities’ economic role. “Mit den nun geplanten Maßnahmen werden Zukunfts- und Wettbewerbsfähigkeit massiv gefährdet,” he said, noting that “Fast 80 Prozent der Patente aus Forschung kommen aus Universitäten.” He called for a government course correction, citing intergenerational fairness.

‘This Is Not Cosmetics’ – Rectors Demand a Course Change

The university leaders announced concrete steps beyond public statements. “Wir steigen aus dem Hochschulprozess mit der Ministerin mit sofortiger Wirkung aus,” Hütter declared, adding that “wenn die Universitäten rückgebaut werden, braucht man nicht über deren Weiterentwicklung sprechen.” Joint protests with student unions and trade unions are also being planned.

Science Minister Eva-Maria Holzleitner (SPÖ) pushed back against the figures. “Ich werde aber alles tun, damit sich für die kommende Leistungsvereinbarungsperiode 2028–30 eine Stärkung ergibt,” she said. Her goal is nominal growth in university funding. She noted that the current sum would be carried forward for 2028 in the upcoming double budget, and that the final three-year university budget would only be set after a government retreat in autumn, by the end of October as the law requires.

Holzleitner pointed to possible adjustments: she said the ancillary labour cost reduction could bring €30 million to universities in the double budget, and construction grants from the Federal Real Estate Company (BIG) could add another €60 million. However, for the immediate 2027–2028 budget, no new money is available.

Minister Pledges to Fight for Growth

The confusion is partly due to the clash of budget cycles. The government is about to present a two-year budget for 2027–2028, while university budgets run in legally fixed three-year periods from 2025–2027 and 2028–2030. The upcoming double budget must partially cover the start of the next period, but the exact amounts for 2028–2030 do not have to be nailed down until October.

Finance Minister Markus Marterbauer (SPÖ) is scheduled to deliver his budget speech to the National Council on 10 June, and intense work on the details is continuing.

The document also targets other areas. The planned reform of the ÖBB-Holding would generate savings of €55 million in 2027, rising sharply to €285 million in 2028. According to the Tiroler Tageszeitung, the second section of the Lower Inn Valley railway between Radfeld and Kufstein/Schaftenau could fall victim to the cuts and be postponed. Tyrolean Governor Anton Mattle warned: “Die Bundesregierung riskiert eine Bankrott-Erklärung in der Transitpolitik. Wenn Österreich seine Zulaufstrecken nicht ausbaut, dann gibt man der deutschen Bundesregierung in Berlin mit ihrer Aufschiebe-Taktik Recht.”

Railways and Agriculture Also Feel the Squeeze

In agriculture, the draft foresees that farmers will receive €50 million annually in agri-diesel subsidies in both 2026 and 2027. At the same time, the government intends to raise pension insurance contributions from 17 percent to 17.4 percent, a measure expected to bring in about €100 million per year. Combined with a higher dividend from the Federal Forests, this would generate €50 million annually, thereby roughly offsetting the diesel compensation. The 2020 Forest Fund, which had a total budget of €430 million, has now been fully used up.

The Public Employment Service (AMS) is also under pressure. Currently, regional AMS offices pay out around €185 million per year in integration grants. The paper suggests these could be reduced, though with only about €60 million in additional revenue at stake, some officials see an agreement as possible.

Opposition figures were swift to condemn the proposals. Green science spokesperson Sigrid Maurer called the cuts a “historischen Angriff auf Universitäten, Forschung und Zukunftschancen” and said it was no longer a savings package but “die systematische Zerstörung des Wissenschaftsstandorts Österreich.” She singled out the SPÖ: “Die SPÖ stellt den Vizekanzler, den Finanzminister und die Wissenschaftsministerin – und gleichzeitig wird bei Universitäten eine Milliarde Euro gestrichen.”

Broad Political and Social Blowback

FPÖ budget spokesperson Arnold Schiefer dismissed the draft as “reformlos, mutlos, zukunftslos und belasten die Bevölkerung.” His party currently leads opinion polls at 37 percent, but the budget for 2027 and 2028 cannot be changed in the short term.

Trade unions and the Chamber of Labour have also reportedly voiced fierce internal criticism, especially because 1.3 million people would be affected by pension contribution hikes, among them a disproportionately high number of women.

The coming weeks are set to see intense negotiations, with the university sector mobilising while the government insists that no final decision has been taken on the 2028–2030 allocations. The budget speech on 10 June will provide the next clear signal of the coalition’s direction.