Revenue Sharing between the Federation and the States

Cooperation between the federal, state and local governments is emerging as a central theme of Austrian fiscal policy. It derives its legal basis from the consulting mechanism and an intra-Austrian stability pact to be finalized by the end of 1998. State and local governments have agreed to limit their new debt to 0.3 percent of GDP, in order to meet a major condition for Austria's participation in European Economic and Monetary Union (to be achieved by 1999).