Poland’s public debt reached 53.3% of GDP by the end of June, nearing the legal threshold of 55% that would trigger automatic austerity measures, including a freeze on public sector wage growth and pension indexation capped at inflation, according to a report by WNP . Analysts at Moody’s and Poland’s Fiscal Council project the 55% limit could be breached in 2027 or 2028, raising the risk of a credit rating downgrade if the government loosens fiscal rules instead of curbing debt.
In Austria, the Social Ministry proposed lowering the threshold for the 55% top income tax rate from €1 million to €500,000 as part of a social welfare reform package, with the change set to take effect in 2027. The measure aims to fund an increase in the child allowance from €700 to €1,000 per year, according to documents obtained by APA .
France is evaluating potential pension adjustments, including desindexation of pensions, removal of tax allowances, or higher social contributions for retirees, as part of budget discussions for 2027, according to a note published by the Institute of Public Policies .
In Belgium, nearly half of disability benefit recipients struggle to cover basic expenses, with 34% relying on financial aid from relatives and 25% borrowing money in the past year, according to a study by Mutualité Chrétienne . The organization called for higher minimum benefits and full indexation of allowances to address rising living costs.
