At around 11 percent, inflation has recently been higher than in a European comparison. One of the reasons for this, according to critics, is the federal government’s anti-inflation measures. Finance Minister Magnus Brunner (ÖVP) clearly rejected this on Monday. He also fails to see that the financial collapse of Silicon Valley Bank in the US can spill over into Europe.
Inflation has now arrived in almost all areas of daily life. An analysis by the Bruegel Institute recently showed that domestic government support is rather counterproductive – it would even fuel inflation.
Brunner: The ECB has inflation levers
In an interview with the ORF “ZiB 2”, Brunner showed little understanding of such assessments. Ultimately, the European Central Bank (ECB) is specifically responsible for the development of inflation, which ultimately has a very important lever to influence inflation by setting the key interest rate in the euro area.
“Of course not all measurements are 100% accurate”
The comparison with other countries – in Germany the inflation rate of 8.7 percent was well below the Austrian level – was only limited by the minister. After all, last year’s inflation was still below the European average, he argued. Moreover, the purchasing power in some of these countries is significantly lower than in Austria.
“Of course, not all measurements are 100 percent accurate,” admitted Brunner, but there’s always some thought to be had — it’s about accuracy and the question of what’s actually fueling inflation. Some measures — such as helping families — ended up being very accurate, Brunner continued.
Consideration rent brake “slightly wider”.
The minister was still vague when asked about a rent brake. While a significant increase in benchmark rents is already in the pipeline for April, Brunner explains that questions about this “have yet to be discussed in detail”. But regardless, only ten percent of households are affected, Brunner again pointed out that such a measure must be weighed. Any help should be seen ‘a little more broadly’, ‘for example also when buying a home.’ In addition, many measures have already been taken in the area of housing, according to the minister.
However, Brunner does not believe that the current financial vagaries surrounding the Silicon Valley Bank in the US can spill over into Europe or even Austria. The subject has already been discussed with the European Commission and the ECB – according to experts, the effects on Europe would “not be there”.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
