The fact that the rent brake is off the table is good news, says Jan Kluge, economist at Agenda Austria in the krone.tv conversation with Jana Pasching. The long-term effects of a rent brake must be taken into account. These are not positive in all cases. “The long-term side effects are so strong that you should stay away from them,” he warns. “In the long run, the tenants would have suffered, but only those looking for new apartments.”
The housing cost subsidy, which replaces the much-discussed rent brake, has come under criticism from many quarters. The measure does not dampen inflation, says Wifo boss Gabriel Felbermayr. Kluge agrees. But it is interesting that the line is now being drawn after spending billions in grants last year. The economist sees it positively that the housing costs subsidy will not be paid out this time, but that it will be acted more correctly.
“We have zombie companies on the market”
In 2021, 3837 euros per inhabitant entered Austria. Only Luxembourg promoted more per capita than Austria. In business, but also in other fields, a large number of subsidies have been received since the corona pandemic. “Of course the state has to spend money in crisis situations. But we should take a closer look at where the money actually goes.” Companies are ‘artificially’ kept alive that should no longer exist. “We have zombie companies on the market. These companies are tying up resources that we would need elsewhere,” says Kluge.
Kluge is sure: “If we were already second in terms of funding, we should have weathered the crisis accordingly. I don’t think that is the case, so we have to ask ourselves what we actually did with the money.” You can see more about this and which solutions the economist sees in the video above.
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Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
