Red alarm level: Freedom -related warning of economic collapse in Austria!

Red alarm level: Freedom -related warning of economic collapse in Austria!

Österreich, Land - The current economic situation in Austria is serious concerns. Barbara Kolm, business spokeswoman for the freedom, criticizes the government under Vice Chancellor Andreas Babler and Finance Minister Markus Marterbauer. She warns of an impending economic downward spiral and calls for a drastic change of course. Kolm recently found that the government treats the current recession with indifference and economic uncertainty, which only tightened the situation. In particular, the confusing funding jungle and inefficient state expenditure are identified as core problems.

KOLM emphasizes that the lack of financial resources that Minister Marterbauer is faced with is not the cause of the crisis. Rather, the government's redistribution policy is responsible for the fact that the economic problems intensified. It sees the ÖVP as irrelevant and criticizes its return to the cold progression, which would particularly burden medium -sized companies.

budget deficits and possible EU sanctions

Current forecasts of the fiscal council indicate a worrying budget deficit of 3.9 % of GDP for 2024 and 4.1 % for 2025. These deficits are well above the EU upper limit of 3 % of GDP and could lead Austria to an EU deficit procedure, as Christoph Badelt, President of the Fiscal Council, warns. The country, which was historically considered a frugal model, could feel the consequences of such a measure that would require substantial savings and reforms.

The debt rate of Austria is expected to increase from 78.6 % of GDP in 2023 to 85.0 % in 2028. Highest expenses for guest houses and salaries of public servants, caused by persistent inflation, as well as a decline in revenue dynamics, the crisis additionally tighten. In order to bring the deficit to less than three percent of GDP and avoid an EU deficit procedure, a consolidation package of at least 6.3 billion euros is required by mid-January 2025.

business strategies and necessary reforms

KOLM appeals to the government of clearly committing an offer -oriented economic policy in order to enable an economic upswing. However, this could only succeed if the ÖVP has the courage to become active in this area. It looks at two possible ways: the continuation of the economic downward movement or the implementation of the necessary economic policy measures.

expertise indicate that the entirety of the budget measures must affect both the expenditure and the income page. Evaluation of the funding system is required to minimize conflicts of goals and double tracks and increase transparency. Long -term success could not only be shown in improved finances, but also in creating new investment scope for the future.

The way out of the current crisis is peppered with challenges. Political decision -makers are required to take short -term and long -term measures to ensure economic stability. How the situation will develop remains to be seen, especially in view of the impending EU sanctions and the associated financial means of pressure.