Corona and containing the economic consequences
Dr. Tobias Thomas Director
On Sunday, the National Council and the Federal Council adopted a comprehensive package of measures to contain the coronavirus and its economic consequences. Tobias Thomas, Director of the economic research institute EcoAustria, comments on this:
"The spread of the coronavirus is progressing rapidly in Austria and Europe and is causing people great concern. The federal government has demonstrated its ability to act and has quickly launched a comprehensive package of measures to curb the spread of the virus. It is inevitable that people's personal and professional lives will also be restricted, as their health is a top priority.
The coronavirus and the containment measures are having a significant economic impact in Austria and worldwide. It is therefore right that the federal government has put together a 4 billion package as a first step with the COVID-19 crisis management fund, which is intended in particular to secure the liquidity of companies and employment. If necessary, the framework can also be increased. In addition, further loan guarantees from the Austrian Kontrollbank amounting to EUR 2 billion are planned. In order to keep the economic consequences of the crisis in check in the short term, measures to secure corporate liquidity such as loans, guarantees and tax deferrals as well as the new, more extensive regulations on short-time working to safeguard employment are important pillars. Maintaining production structures is also essential for the future recovery.
What further measures will be necessary to contain the acute crisis and its economic consequences will depend on the further course of events both nationally and globally. After that, the aim will be to return Austria to a stable path for growth, prosperity and employment. The planned tax relief for employees and companies can be an important driving force for the upturn, as it will lead to more purchasing power, investment opportunities and employment. As soon as the current course of the crisis makes it possible, a reliable roadmap for an Austria Recovery Program would be an important step towards stabilizing expectations. Reducing the high tax burden on employees and companies is also crucial. Overall, the aim must be for Austria to be in a better position than before once the crisis has been overcome."
