IHS Baas Holger Bonin calls for a contribution to the renovations of state finance. The economic researcher emphasized that private households should also contribute to something, emphasizes on Sunday in the ORF “Persuur”. At the same time, the federal states wave away and point to a low scope.
“The state has suffered, the debts have risen,” said Bonin about the economic development of recent years. The public sector has arrived for private individuals, who are now being shown in the budget deficit. But companies also have little room for investments due to high wages. Now households must also contribute something. You wait until private consumption jumps, but this is also “a matter of trust”.
From 2026, the Institute for Higher Studies expects moderate economic growth of about one percent per year. This plus is also not determined, the prospects in the medium term “not particularly good”, says Bonin: “We have to worry.” He expects “rather negative surprises” from the presentation of the financial data for 2024.
“The shortages in the municipalities are probably higher than expected,” said the economic researcher. However, it is important how to respond to an extra budget hole. Bonin described the recent savings requirement of around twelve billion euros this year as an “absolute upper limit”. Countries and municipalities should help save, but you also have to talk about financial autonomy in certain areas.
In the federal states, the requirements of the federal government offer little joy for a higher contribution to budget renovation. On Friday after the Governor of the upper Austria Thomas Stelzer (ÖVP), his styric counterpart Mario Kunasek (FPö) also suffered violent criticism after Governor Thomas Stelzer (ÖVP) of Austria. Other countries are milder in the sound, but also see hardly any opportunities for savings. President of the community association Johannes Presl (ÖVP) also refers to the poor financial situation of the communities.
“I think we can do it”
Bonin does not find an EU deficiency procedure in itself poor. Anyway, politics must show where it should go. Sustainable measures are crucial. The IHS boss also demanded that in the climate area and found an “empty space” in the government program. This shows that you don’t want to bind yourself. For example, the removal of climate damage subsidies is required.
In general, Bonin wanted to remain confidence: “I think we can do it,” he said about budget consolidation. He finds the mood in the new government as “constructive”, its approaches “evidence based”.
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.
