In Austria, impulses for growth are urgently sought. The country is plagued by a recession and suffers from high inflation. Despite the budget crisis, the coalition now makes money loose.
A billion
The coalition in Austria wants to boost the economy that has been paralyzing for years with an economic stimulus package of one billion euros. Among other things, the bundle of measures provides for the increase in the investment allowance from ten to 20 percent, said Minister of Economics Wolfgang Hattmannsdorfer (ÖVP). In addition, energy -intensive companies can expect relief. More than 100 million euros are to be included in the expansion of the broadband network.
On top of that, the alliance of conservative ÖVP, social democratic SPÖ and liberal Neos wants to do something about inflation. To this end, the government wants to fight against the “Austria-Litt” in the food trade at EU level. The large food companies offer their products at a national level, which makes purchasing in the more small market Austria, for example, compared to Germany.
No fresh money for the economic stimulus package
The package will be financed by shifting in the budget, emphasized Finance Minister Markus Marterbauer (SPÖ). In view of the extremely difficult budget situation of the federal government, it is no different. Austria must accept EU deficit procedures due to the violation of stability criteria.
The economic situation in Austria is difficult. Finally, the country experienced a recession. At the same time, inflation is significantly higher than in the EU average. According to preliminary data from the statistics Austria, the inflation in August was 4.1 percent and thus above the inflation rate of 2.1 percent in the euro zone. That is “far too much,” said Chancellor Christian Stocker (ÖVP). The package of measures is to be decided on Wednesday in the Council of Ministers.