Austria Migrant Spending Excluded From Eurozone Budget Deficit Target

The European Commission recognized that the Austria's refugee-induced spending is extraordinary and unexpected, according to Austria's Finance Minister Hans-Joerg Schelling.

MOSCOW (Sputnik) — The European Commission has conceded to Austria's request to exclude costs invoked by the migrant crisis from the country's budget deficit target, Austria's Finance Minister Hans-Joerg Schelling said on Monday.

"The Commission recognized that the refugee-induced spending is extraordinary and unexpected," Schelling told Austria's Oe1 public radio station.

Austria can be certain that the migrant-linked spending deduction will take place, with technical details still to be clarified, the minister added.

Austria has set aside over 1 billion euros ($740 billion) for for migrant spending next year, with the costs rising from 0.1 percent of GDP in the current year to 0.3 percent of GDP in 2016, the finance minister's latest annual budget report said. As Austria is close to failing to meet the European Commission's Stability and Growth Pact (SGP) budget deficit target pf 3 percent, omitting this figure from its deficit to GDP ratio could help the country comply with the targets.

In mid-October, Austria's finance minister outlined the budget plan for next year, projecting an influx of some 85,000 refugees.

Over 1.2 million illegal border crossings into the European Union have been recorded by EU border agency Frontex since the start of 2015.