Tuesday, January 21, 2020

Austria prepares for the election under cloudy economic forecasts

Featured

Hong Kong: Police brutality peaks with baton charge, pepper spray and rubber bullets

Tens of Thousands of people demonstrated in Hong Kong against Chinese human rights abuses. However, 90 minutes after the...

Breaking: Johnson will impose new restrictions on low-skilled immigrants

British Prime Minister Boris Johnson is preparing to impose new restrictions on low-skilled immigrants who move to Britain after...

European Union forces Apple to abandon Lightning charging port

Recent reports revealed that the European Union may force "Apple" to change its iPhone charger again, to make it...
Mehboob Ali Shaikh
Mehboob Ali Shaikh
Mehboob Ali Shaikh is the Bureau Chief of World News Observer. Based in Canada, working with Toronto 360 TV. Mehboob has accomplished Years of experience in print and broadcast media. He is an active participant in Social media strategies, including Facebook, Twitter and Skype.

Austria has prepared for the general elections under cloudy economic forecast. Austrian economists find it difficult to be heard in politics. Maybe that’s because they’re off the beaten track. That applies at least to the Wifo Institute for Economic Research, the largest think tank in the country. The squat concrete building near the new Vienna Central Station has nothing in common with the sophisticated city palace in the city center. A secluded purpose-built building, which is also on a former military site, the “Arsenal”. The Museum of Military history is not far down the street.

“I’ve never been there, but I like the motto of the house: The war belongs in the museum”, says Christoph Badelt. The highly decorated economics professor Christoph Badelt is the current director of the Austrian Institute of Economic Research and professor at the Vienna University of Economics and Business. Badelt and his team are producing the growth forecasts for Austria, and they look much worse this year than they did in the past. This has nothing directly to do with the end of the black-blue coalition, which was able to swim on a wave of boom. But the cooling of the economy coincides with the elections and the change of government, and that worries the professional.

“The taxes are not as abundant as they used to be, that narrows the scope of the next government”, said Badelt. “The danger is great that the pace of reform will subside”. From an economic point of view, one must worry, that after the elections, a constellation arises, with nothing more moves. Who wants to make unpopular reforms when the economy revolves?

Interestingly, these approaches are found in almost all parties of Austria, in each election program, new taxes are proposed. From a liberal point of view, therefore, the question is not which party come to power on Sunday, but what wings prevail. In the OVP and the SPO there are enough redistributors who could find together in the Greens anyway. And the allegedly “free” FPO is much closer to the left in social policy and its orientation towards the “little people” than the conservative business circles in the OVP, who prevailed in the past government.

“No one takes overall responsibility”

Badelt praises that in the black-blue government there were correct approaches to austerity policy: the budget is balanced, some debts were repaid, there were first reductions in taxes and social security contributions. But then broke the coalition in May due to Ibiza affair, a transitional government under the non-party Chancellor Brigitte Bierlein took over the business, since then many reforms got stuck.

“Every parliamentary club enforces what its stakeholders have always wanted, with the  majority in the National Council”, said Badelt. In general, the 68-year-old economics professor observes that the policy shies away from making uncomfortable decisions in Austria and to turn the head: “Those responsible do not dare to tackle the unpopular and to take something away from people so that they have enough in the future”.

Read also: Austrian parliament approves banning smoking in restaurants and child care leave

Mehboob Ali Shaikh
Mehboob Ali Shaikh
Mehboob Ali Shaikh is the Bureau Chief of World News Observer. Based in Canada, working with Toronto 360 TV. Mehboob has accomplished Years of experience in print and broadcast media. He is an active participant in Social media strategies, including Facebook, Twitter and Skype.

Latest News

Britain invests $ 400 million in Africa

The British government-owned Development Finance Agency (CDC Group) said it has signed investment deals in Africa worth $ 400...

Trump miscalculates trade war, bad news for his supporters

American trade policy since taking office by Donald Trump aligned as president in January 2017 confrontation. His intention was to conclude new "deals" with...

China : Corona virus spreads from person to person

Corona virus in China can also be transmitted from person to person. In addition, infections among medical personnel have been confirmed, a team from...

UNWTO: Global tourism rate fell 4 percent, slowest since 2016

UNWTO report said that the international tourism rates fell four percent last year, the slowest growth since 2016, according to the World Tourism Organization. The...

Malaysia ships back 150 containers of plastic waste to the exporting countries

Malaysia has shipped 150 containers of plastic waste estimated at 3,737 tonnes, to its exporting country since the third quarter last year. Minister of Energy,...

Related News