2023-06-08 20:01:05
Innsbruck (OTS) – Far from the island of the blessed: Unfortunately, the Alpine Republic has become one of the most expensive places in Europe. Politicians are urgently required to analyze all the reasons precisely and then eliminate the errors in the system as quickly as possible.
It’s really important to bring inflation up to price stability levels.” That’s what Thomas Jordan, head of the Swiss National Bank (SNB) for combating inflation, said yesterday. What is so remarkable regarding the quote: Switzerland had an inflation rate of just 2.2 percent in April. But according to Jordan, they want to reach a corridor of 0 to 2 percent.
The European Central Bank (ECB) also has an inflation target of around 2 percent for the euro zone. Even following a series of interest rate hikes, it is still miles away from this, even if the inflation rate has recently fallen from 7 to 6.1 percent. And Austria is even worse. After peaking at just over 11 percent (the highest inflation in over 70 years), the inflation rate has recently fallen to 8.8 percent. Super-expensive Austria: Of the other 26 EU countries, prices rose more sharply in only nine (mainly in Eastern Europe, especially Hungary), but less in the other 17.
Partly there is probably a lack of competition, partly the strong cost increases, for example for energy and personnel, are having a stronger impact than in other countries, such as in tourism. And last but not least, the state with its watering can subsidies has further fueled the prices. There was a lot of talk regarding a review of the Corona measures (here, too, tens of billions of euros flowed), at least as urgent would be a review of why Austria is one of the most expensive patches in Europe. This is in the interest of both the population, who is confronted with a wave of inflation that most of them have never experienced before, and the economy, which is also extremely burdened by the increase in costs. While some dream of 32-hour weeks with full wage compensation, Austria as a business location is in danger of suffering massive damage. This applies on a larger scale in the economic race with Asia and the USA, but also for the entire EU.
The now high inflation did not fall from the sky. Even before the Ukraine war, the ECB was downplaying the excessive inflation. It was she who prepared the ground for her – with an incomparable flood of money, which above all helped the highly indebted states at the expense of the savers, who gradually lost many billions. When the euro was changed over in cash in 2002, it was said that the euro should under no circumstances become expensive. The common currency is an EU lighthouse project and itself did not trigger the price jumps. Most of today’s euro prices are better left unconverted by those who still knew the Schilling in Austria in order to protect their nerves.
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