Government in the crisis: Kolm warns of recession and tax increases!

Government in the crisis: Kolm warns of recession and tax increases!

Österreich, Land - The political discussion about the financial future of Austria increasingly opens up speed. SPÖ Vice Chancellor Babler and SPÖ Finance Minister Marterbauer prepares the public for an impending EU deficit procedure. This is done in the context of an economic recession that the country currently employs. According to FPÖ economic spokeswoman Dr. Barbara Kolm is due to the inefficient state expenditure and funding. Kolm describes the redistribution through grants as a factor that contributes to tightening the recession.

"The government throws the towel", says Kolm, who sees responsibility for the increasing deficits in the current government. This also makes a clear accusation to those responsible that they may be trying to push their failure to the European Union as soon as the deficit procedure begins. Kolm expresses special concerns with regard to future financial burdens for citizens, because it warns of increasing international risk premiums for loans, which could subsequently have higher credit interests and inflation.

EU deficit procedure in detail

In the summer of 2024, the EU Commission had already initiated criminal proceedings against seven EU member states that are in a similar financial situation. Austria, once regarded as a frugal model in the field of housekeeping, is now facing its own EU deficit procedure. The country's deficit is currently around four percent of gross domestic product (GDP) and thus significantly exceeds the Maastricht criterion of less than three percent.

The EU is forced to intervene if there is too high debt in order to recognize and counter undesigned undesirable developments in economic policy at an early stage. The process for the initiation of a deficit procedure consists of several phases in which the European Commission is created and presented it to the Council of the EU Finance Minister for Approval. If the requirements are not complied with, significant sanctions can be imposed, which in the worst case can also involve fines.

future prospects and solutions

The political reaction to the impending crisis shows a plea for an offer -oriented economic policy, as required by Kolm. The previous plan provides for savings of around 6.4 billion euros to renovate the budget. A comprehensive and credible renovation plan that has to be submitted by the next Ecofin Council on January 21, 2024 is essential to avert a deficit procedure.

In another politician approach, the deficit process could offer more flexibility in times of crisis to ensure Austria's economic stability. However, maintaining solid housekeeping is essential in order to be able to assert in future economic challenges.

The discussion about the economic challenges is only a preliminary stage to a complex process that could have far -reaching consequences for those responsible and for the Austrian population. Time is urged and those responsible are asked to take determined measures to avert worse.

Further details on the background and processes of EU deficit procedure and its effects on the member states are in the reports of OTS href = "https://www.kleinezeitung.at/wirtschaft/19252562/was-ist-ein-eu-eu-eu-eu-proceedings-lauft-es-ab"> Kleine Zeitung and Tagesschau