Austria’s draft budgetary plan for 2027 is compliant with EU fiscal requirements, the Eurogroup said in a statement on Thursday.
Austria submitted its draft budgetary plan for 2027 and 2028 on 10 June 2026, and the European Commission published its opinion on the 2027 plan on 6 July 2026.
The Eurogroup said it agreed with the Commission’s assessment that the 2027 plan complies because projected cumulative growth in net expenditure for 2027 is below the maximum expenditure growth set out in a Council recommendation.
Austria was set a path for maximum growth of net expenditure from 2025 to 2029 in a Council recommendation adopted on 8 July 2025, and an excessive deficit procedure was opened for the country at the same time.
An excessive deficit procedure is an EU process used when a member state breaches, or risks breaching, deficit and debt limits under EU fiscal rules.
For 2025 to 2028, the maximum net expenditure growth rates align with a Council recommendation under Article 126(7) of the Treaty on the Functioning of the European Union, with the intention of ending the excessive deficit situation by 2028.
Update requested for 2028 plan if policies change
The Council activated a “national escape clause” for Austria related to defence expenditure covering 2025 to 2028 on 17 February 2026, according to the Eurogroup.
The escape clause is a provision that allows temporary deviation from fiscal requirements under specified conditions.
The Eurogroup invited Austria to run its 2027 fiscal policy in line with the Stability and Growth Pact — the EU framework that sets budget rules for member states.
Because Austria submitted its 2028 plans unusually early, the Commission will assess implementation of the recommended net expenditure path for 2028 in autumn 2027.
Austria was asked to submit an updated draft budgetary plan for 2028 by 15 October 2027 if there are significant changes to the policies set out in the plan submitted on 10 June 2026.
