Carinthia's debt trap: economists warns of threatening crisis!

Carinthia's debt trap: economists warns of threatening crisis!

The economic situation in Carinthia shows worrying developments that lead the country into a critical situation. According to the economic researcher Norbert Wohlgemuth from the Carinthian Institute for Higher Studies, Carinthia will increase from 4 to 6.8 billion euros by 2028, even assuming a savings package. This forecast does not take into account the planned salary increases for 12,000 state and hospital staff. At the same time, inflation increased to 3.3 percent in February, while construction production was 5.1 percent and production in the processing business by 5.5 percent. This combination of increasing debts and falling economic performance could lead to the creditworthiness of Carinthia is downgraded by the rating agency Moody’s, which would endanger the entire financial stability, reported ORF Carinthia .

The distribution of income in Europe also reveals an alarming inequality. An analysis of the Institute of German Economy (IW) shows that a citizen with the same purchasing power in Germany can belong to the middle class, while it is considered to be at risk of poverty in Luxembourg. Interestingly, income limits vary considerably if you look at the EU as a single country. Around 20 million Europeans from wealthy countries are no longer at risk of poverty, while more than 45 million people from poorer EU countries fall under the EU-wide poverty threshold. This affects almost 90 percent of the population in Romania, while less than 2 percent in Luxembourg were affected. In a hypothetical European state, about 22 percent of citizens would live under the poor -buying power threshold, which illustrates a significant unequal distribution of prosperity. Despite this critical analysis, Germany felt relatively better, since the relative poverty would be halved statistically, as