Shocking deficits: WIFO demands basic financial reform!

Shocking deficits: WIFO demands basic financial reform!

In a current analysis, the WIFO, the Austrian Economic Research Institute, raised the alarm and calls for a "serious, ambitious renovation" of the financial situation in Austria. The focus is on the massive budget deficit, which shocked the institution. The demands include the need for the federal government, countries, communities and social security to present "constructive plans" to combat financial difficulties, while criticism of Austrian federalism is lit due to an "enormous negative surprise". Kleine Zeitung reports that important reforms in federalism are required to improve the financial situation.

reactions from politics

The reactions from the political landscape are mixed. The countries vehemently rejected a higher contribution to budget renovation, with the argument that they hardly see any opportunities for savings. Community Association President Johannes Pressl pointed out the tense financial situation of the municipalities. In this context, Tirol's governor Anton Mattle emphasizes that Tyrol and his communities have the lowest debt all over Austria. He also speaks in favor of avoiding an EU deficit procedure.

This discussion reflects the complexity of the federal structures in Austria, which have been criticized again and again in recent years. Historically, there were several comprehensive federalism reforms in Germany that should regulate the distribution of tasks between the federal and state governments. The first major reform of the state structures in the 21st century took place twelve years ago, followed by another reform nine years ago, which received little public attention. These reforms aimed to redesign the financial relationships between the federal states and the federal government, but also to address the problem of clear responsibilities and responsibilities. Wikipedia illustrates these developments in their detailed descriptions.

The current federalism reform

The ongoing federalism reform III has the potential to fundamentally expand the federal state skills. The most important changes include the expansion of federal competence to co -finance investment projects by the federal states and municipalities, especially in the field of education. A new article in the Basic Law enables the federal government to give financial aid for total -state investments in financial weak municipalities, which can be seen from constitutional blog.de. However, this reform could also bring significant shifts in the relationship between the federal and state governments, which may not be in the sense of federal autonomy.

The planned changes must withstand a two-thirds majority in the Bundestag and the approval of the Federal Council, which has already led to various political assessments and applications in the Bundestag. Experts warn of the risks of increasing centralization in the federal structure. The reforms seem to make it clear once again that the balance between the federal and state governments has to be re -expanded again and again, as was the case in the past. Constitutional Blog underlines the scope of these changes and the necessary further steps to reform the financial constitution.