During the next few decades the populations of most developed countries will grow older and older as a result of the low fertility rates since the 1970s and/or the continuously increasing life expectancy. Generational Accounting which was introduced in the early nineties, can illustrate the effects of this ageing process on a country's fiscal situation. We quantify for Austria how unsustainable its public finances are due to the demographic development. We show that despite recent reforms of the pension and health systems the demographic development produces a major problem for Austria's coffers. Furthermore we compare our results to similar calculations for Germany and Switzerland.JEL Classification: H50, J10, H30 * Forschungszentrum Generationenverträge (Research Center for Generational Contracts), Albert-LudwigsUniversität Freiburg (Freiburg University), D-79085 Freiburg, Germany (Fax +49-761-203-2290, christian.hagist@generationenvertraege.de). We would like to thank Tobias Hackmann, Johannes Vatter and two anonymous referees for valuable comments. All errors remain our own.