“There is no wonderland that creates strong growth, low inflation, a balanced budget and rising incomes at the same time,” said Finance Minister Magnus Brunner: Austria recorded strong growth in the first half of 2022, and employment is at a record high. Annual inflation in 2022 was below the EU average. According to Economics Minister Martin Kocher, purchasing power has also been preserved, “that’s the most important factor”. The high inflation must not become entrenched: that is the job of the central bank.
During an online press conference yesterday, the ministers defended the federal government’s measures to combat inflation. Reasons for the high inflation compared to other countries are the still high energy costs, the strong wage agreements and also the good demand. This year inflation in Austria is expected to be 6.6 percent (EU average: 6.4 percent). Brunner and Kocher defended the relief measures and did not accept the accusation of “watering can”, even if they might have been more accurate. “We didn’t do everything right, but we did a lot of things right,” said Brunner. Much is due to the data situation. State Secretary Florian Tursky is expected to link the data that is not available centrally by the summer.
Malice came from the opposition: The Neos spoke of a catastrophic crisis management that cannot be glossed over. According to the FPÖ, the ministers have no idea how people are doing. The SPÖ criticized that the government had failed in terms of sensible measures.
author
Elizabeth Prechtl
Editor Economics
Elizabeth Prechtl
