Austria in debt trap: Inflation kills the middle class!

Austria in debt trap: Inflation kills the middle class!

In the past few days, the euro has experienced a surprising increase, but this does not speak for the economic situation in Austria. They criticize the freedom that this increase is much more due to the alarming public debt in the EU and especially in Germany. Exorbitant expenditure programs for armor and infrastructure, which are estimated as about one trillion euros, create a higher demand for European bonds at short notice. As a result, interest rates are increasing, but the already tense economic situation in Austria is further tightened. Alexander Petschnig, the spokesman for the freedom for money and monetary policy, makes it clear that the current coalition cannot combat inflation sustainably and instead accumulates new debts, which only shifts and does not solve the problems, as ots.at reported.

increasing inflation and its consequences

The increasing prices primarily affect the middle class, which not only has to deal with increased energy and raw material costs, but also with rising interest rates. Petschnig emphasizes that the combination of inflation, exploding public debt and a persistent recession represents a "toxic mix" that suffocates the optimism of the population. This is also reflected in the savings rate, which has increased from eight to twelve percent - a clear sign of the growing concerns of citizens about their financial future. Petschnig further explains: "A clear strategy for combating homemade inflation and returning to solid budget practices would be necessary to free Austria from the vicious circle of rising costs and falling competitiveness".

The challenges should therefore not be underestimated. Science also indicates the complicated relationship between inflation rates and monetary policy, especially in the context of the European Central Bank and its interest decisions, which significantly influence economic stability in the euro zone, as in the comprehensive analysis of Springer .