Austria is looking for allies in the fight against the EU’s relaxing deficit rules, with the country's finance minister Gernot Blümel urging countries to "act together". 

Discussions on the polemic public spending reform are set to get underway in a matter of months.

Blümel wrote to neighbouring Northern European countries back in June requesting a meeting to talk about a possible alliance.

The letter stated: "We should act together and form an alliance which ensures a Europe which is based on sound fiscal policies and fiscal sustainability."

"I am convinced, that we should strive for a tight exchange and close cooperation both internally in the relevant Council sessions and externally in communicating our common vision on the future of EU fiscal policy.”

Two months later and Austria’s finance minister is stepping up his plans, calling the EU’s drive for increased flexibility around public spending "a high-risk gamble", reports The Express.

Talks regarding the public spending rules and permitting enhanced flexibility are set to begin in the autumn.

Speaking to Politico, Blümel said: "This hypothesis [assumes] that there will not be any difficult economic situations in the future” which he said is “just not the case.”

The current regulations are on hold until 2023 due to the pandemic. These rules limit budget deficit at 3% of economic output and attempt to cap public debt at 60%.

Yet the talks are facing a push from Spain, France and Italy to relax the rules in the latest division between EU countries, with Austria seeking allies to counteract the initiative.

Those nations seeking a rule change claim it would reduce pressure on countries with escalating debts, and are calling for environmental spending and green initiatives to be given a "free pass".

Yet, Austria is leading the calls against the change. Blümel added: “I don’t think that this is a feasible solution."

He warned the current borrowing rates won't stay low in the future.

The Austrian minister went on to say: “In the end, it’s how the markets evaluate lending to you, and you won’t reduce the risk by doing artistical calculations.”