"We have already reduced investments in trains and information technology to a minimum," Kern told the Kurier newspaper on February 20. The government has scrapped a tax break on mineral oil products which will increase costs by €200m per year.
In addition, the government also announced last month it will cut €920m from ÖBB's infrastructure budget for 2012-16, which means several regional infrastructure projects are likely to be axed. However, Kern stresses that the Koralm, Semmering and Brenner base tunnel projects will continue, although ÖBB will seek to reduce costs on all three schemes.
The crisis in the Eurozone and fears that Austria's credit rating could be downgraded has prompted the government to revise its budget for this year.
ÖBB posted a record loss of €330m in 2010, but reduced the deficit to €28m last year and aims to achieve a profit next year, although it is unclear what impact the reduction in government support will have on targets for this year.
The cuts were announced just days after ÖBB revealed 96.6% of passenger services arrived within five minutes of schedule in 2011, a 6.1% improvement over 2010.
The cuts were announced just days after ÖBB revealed 96.6% of passenger services arrived within five minutes of schedule in 2011, a 6.1% improvement over 2010.
