Austria's finance minister said rising interest rates have increased debt servicing costs and forced the government to raise its 2027 fiscal deficit forecast to 3.6% of GDP from 3.5%. The government had aimed to cut the deficit to the EU 3% limit by 2028; deficits in the past two years were slightly above 4%. Austria's 10-year benchmark bond yield has risen about 70bps in recent months, which will boost next year's interest costs by roughly €500m. The revised 2027 deficit rate will be included i

Austria's finance minister said rising interest rates have increased debt servicing costs and forced the government to raise its 2027 fiscal deficit forecast to 3.6% of GDP from 3.5%. The government had aimed to cut the deficit to the EU 3% limit by 2028; deficits in the past two years were slightly above 4%. Austria's 10-year benchmark bond yield has risen about 70bps in recent months, which will boost next year's interest costs by roughly €500m. The revised 2027 deficit rate will be included in next year's fiscal forecast to the EU.