After a detailed analysis of the key figures of numerous local small and medium-sized businesses, economic expert Gerald Zmuegg from the Financial Ombudsman team predicts a gloomy awakening: “This year, 53 percent of businesses will end up with losses. Business is particularly bad in the area of trade, which is a major problem. But things are also very tight in the catering industry and construction.”
Next year the loss rate will increase even further because the current recession leads to a great need for liquidity: “Cash flow has clearly deteriorated at the moment, so companies need fresh capital. But it is currently difficult to get this to the banks.” According to Zmuegg, there will be major staff layoffs at companies to cut costs. Conclusion according to the Financial Ombudsman team: “Unemployment will rise.”
“People consciously look the other way”
According to Zmuegg, politicians continue as usual in the current situation: “It is a kind of trance-like state. Responsible people suppress the necessary reactions and consciously look the other way. Politicians, on the other hand, should talk much more to affected companies – and take action.” The frequently heard statements that COFAG has prevented bankruptcies with its Corona support of 14 billion euros are also incorrect: “The bankruptcy assets were only delayed by a year and a half of postponement, but not prevented.”
The current economic situation surrounding Signa and all its investments is particularly spicy. Zmuegg: “You have to ask yourself: at what point did the supervisory boards know about the losses – and why didn’t they intervene?”
In the video above you can see many more details about the current economic situation in Austria.
We explain what Austria is currently dealing with: the latest news conversations with politicians and experts.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
