It has been revealed by a government advisory body, that Austria’s government debt may not return to the pre-crisis level of 60% of gross domestic product until 2020.

It predicted an increase in the figure to 80% in 2011, from 62.5% recorded in 2008.

The financial ministry stated that the country’s banking stability, stimulus measures and tax shortfalls caused by the recession will quickly balloon the deficit in the next three years.

Austria’s debt was 59.4% of GDP in 2007 and rose to 62.5% in 2008. The finance ministry forecast it rising to 75.7% in 2011 in a prediction based on GDP forecasts.

For the country to create a balanced budget in the years from 2010 and record a growth of 4% yearly, they will have to reduce the level of debt below 60% before 2020.

Bernhard Felderer, head of the Institute for Advanced Studies (IHS) stated: "The day will come when consolidation has to start. We need to have a ready plan by then."