Five Days in the National Council: Plenary to Debate Budget and Numerous Accompanying Laws Through Friday

Budget Deficits and the EU Framework

At the center of the second stage is the federal budget with its corresponding deficit targets. "The goal is to end up with a budget deficit of 3.5 percent of GDP in 2027" and "in 2028, with 3.0 percent, they want to return precisely to the framework permitted by the EU." The government thereby aims to comply with the Maastricht criteria again. The accompanying law provides for a pension adjustment of 2.95 percent, meaning that inflation will not be fully offset.

Taxes and Levies

Several measures are being bundled to provide offsetting financing. "New is a parcel levy intended to offset-finance the VAT reduction on staple foods." "The alcohol tax will be raised significantly." "Furthermore, the corporate income tax will rise to 24 percent on profits exceeding one million." In addition, a reduction in non-wage labor costs at the Family Burden Equalization Fund (from 3.7 to 2.7 percent from 2028) is to be implemented.

Social Affairs and Pensions

Targeted accents are being set in the social domain. "The family allowance will not be valorized." "The same applies to sickness, rehabilitation, and retraining benefits." At the same time, "contributions to the FLAF will now also have to be paid by older employees" — meaning a broader financing base for the Family Burden Equalization Fund. "The maximum contribution base will be raised as an exceptional measure."

The transport sector is also being reorganized. "After initial registration, the next inspection will in future only be required after four years instead of three years as previously." "The intervals will also be extended thereafter." At the same time, "the previously more favorable regulations for displaced persons from Ukraine" in the transport sector will be eliminated. "The bank levy will be extended by three years."

Consumer Protection and Repair Obligation

The government is setting new accents in consumer protection. "Manufacturers of certain consumer products, such as smartphones and washing machines, will be required to repair them free of charge or to offer such repairs at a reasonable price." "The practice of deliberately planning or designing a product with a limited lifespan will be explicitly prohibited." "For distance contracts — that is, those concluded, for example, by telephone or over the internet — a function enabling an online withdrawal declaration must be made available in future."

Education and Ethnic Groups

Further resolutions are being adopted in the areas of health and society. "Among the further resolutions is a simplified extension of end-of-life directives." In medicine, basic training will be shortened from nine to six months starting August 1. "Disposable e-cigarettes will be banned as of the end of the year." In addition, there will be "high penalties in future for throwing away cigarette butts on children's playgrounds."

In the education sector, "two new school subjects — 'Media and Democracy' as well as 'Computer Science and Artificial Intelligence' — are being introduced. To accommodate these, two hours of the second modern foreign language or Latin will be eliminated in the upper secondary level of the academic secondary school (AHS)." In foreign policy, "an Africa strategy is being adopted for the first time." For minorities, it is stipulated: "Austria's six autochthonous ethnic groups will henceforth be explicitly named in the Ethnic Groups Act, safeguarded by a constitutional provision."

Finally, existing subsidies in the environmental and agricultural sectors will be continued. "Payments for a forest fund will also be extended." "The subsidization of agricultural diesel will be continued." The accompanying legislative package is thus broadly positioned in terms of content — from tax policy through social policy to education policy.

With the adoption on Friday, the budget for 2027 and 2028 is to be finalized and a bundle of accompanying laws is to enter into force simultaneously, affecting many areas of citizens' lives — from family allowance through vehicle inspection to school instruction.

The individual resolutions will partly enter into force on August 1, 2026, partly on January 1, 2027, or later. This marks the beginning of an implementation phase that extends beyond the plenary week and will become tangibly evident in the months that follow.

Overall, the week is characterized by a high workload and a broad substantive spread. Within just a few days, the members of parliament must deliberate on and pass dozens of legislative items — a burden last experienced in a similar form more than three decades ago.