Austria took more taxes than ever before last year, but that is not enough to cover high government spending. According to Statistics Austria, the State Shortage is 4.7 percent-one clear violation of the EU requirements that prescribe a maximum debt of a maximum of 3 percent. Experts warn of a disturbing trend.
Despite record income for taxes, Austria spends even more than he takes. But not only the increasing government spending are a problem – the economic situation also leads to concern.
The economic crisis does not remain without consequences. Rising government spending on the one hand, a shrinking economy on the other. The economist warns: “This leads to loss of wealth. The economy has been shrinking with the highest government spending for three years. This means abandoning the population, especially for wages that cannot remain stable.” High inflation has led to strong wage increases in recent years. But that doesn’t happen that way. Because inflation is not decisive for wages, but economic growth – and that does not mean, according to the expert.
So how can Austria remain competitive? The answer in the video.
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.
