Austrian Agriculture and Environment Minister Norbert Totschnig on Thursday unveiled a package of spending cuts aimed at trimming the 2027/28 federal budget, framing the measures as a “key contribution to fiscal consolidation” that would still allow vital support for farmers. Speaking at a Vienna press conference, Totschnig (ÖVP) said the savings would target the agriculture and environment portfolio while preserving direct payments and rural-development programmes. He gave no absolute figures but stressed that the cuts were calibrated to avoid undermining the sector’s competitiveness or the government’s climate commitments.

The announcement comes as EU leaders in Brussels struggle to reconcile competing visions for the bloc’s next seven-year budget, the Multiannual Financial Framework (MFF) for 2028–2034. Austrian Chancellor Karl Stocker, also speaking on Thursday, reiterated his demand that the EU budget not exceed one per cent of the Union’s economic output and signalled he would seek a rebate for Austria before the end of 2026 . “The architecture proposed by the Commission is acceptable, but the priorities and amounts remain far apart,” one EU diplomat told *La Libre Belgique* on condition of anonymity .

Totschnig’s initiative follows an agreement reached on Wednesday to redirect EU funds into Austria’s new Family Burden Equalisation Fund, a move intended to ease pressure on national coffers . The minister insisted that the savings package would not affect those transfers, which are designed to support households with children.

Across the EU, finance ministers are racing to finalise the MFF ahead of the 2027 European elections, which many analysts warn could further polarise negotiations. “The disagreements between member states and EU institutions are still sharp enough to unsettle even the most seasoned heads of government,” *Euronews* reported on Thursday . Austria’s position—advocating a smaller budget and a rebate—aligns with the so-called “frugal” camp, while countries in central and eastern Europe continue to push for cohesion and agricultural funds.

Totschnig said the government would publish detailed line-item reductions by the end of July, giving ministries and stakeholders a month to comment. He added that the savings would be reinvested in digital infrastructure and renewable-energy grants to ensure the cuts did not derail Austria’s green transition.

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