Companies are still processing orders, but new projects take a long time to arrive. Many offices need to save on infrastructure projects due to rising prices. Measures are needed.
“We normally receive orders in the fall and winter for the coming spring season. But now there is absolute silence,” complains a contractor from the Neusiedl am See district. His employees have had their hands full in recent weeks.
Money is missing
However, the economic dilemma is leaving its mark and the consequences are serious. Both private customers and companies are short of money. “Many homebuilders are having to lower their expectations due to extremely rising costs and interest rates. The situation is no different for companies; operational investments are delayed,” explains an expert from the construction sector.
Great uncertainty
The uncertainty is also palpable in the offices. “In many conversations with fellow mayors in recent weeks, the gist was that many projects are being postponed due to the current economic situation. But at this time it would be very important to bring forward investments to save jobs,” said Thomas Hoffmann, local boss of Schattendorf and SPÖ district chairman.
Save jobs
In fact, communities could play an important role and boost the regional economy with targeted financing – despite poor credit conditions and high building material prices. “Preserving jobs would also help stabilize the overall economic situation,” Hoffmann notes.
State Governor Hans Peter Doskozil has already foreseen the impending economic collapse and – although this does not fall within his area of responsibility – has set up a special financing pot, filled with 26 million euros.
Multi-point economic stimulus package
Given the risk of a disastrous recession, Hoffmann believes it is necessary for the federal government to put together a comprehensive economic stimulus package. His main focuses:
- Making it easier for communities to invest in infrastructure: “The federal government could provide funding to create incentives and simplify the process.”
- Promoting sustainable investments: The economic stimulus package aims to create incentives to promote environmental change in the economy. “This secures jobs in the long term and makes a significant contribution to protecting the environment.”
- In addition, measures should be taken to increase domestic demand. “This could be done through tax credits for consumers or targeted support for low-income households.”
- More money should be allocated to education and research, but also to promising industries such as the entire digitalization sector.
Many entrepreneurs agree on one point: the economy urgently needs strong positive signals.
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.
