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A new blockade threatens the existence of national companies. IHS Director Martin Kocher explains at ORF what politicians have to do now.
On the eve of the long-awaited federal government press conference that included the announcement of a new lockdown for Austria, ORF presenter Lou Lorenz-Dittlbacher asked Martin Kocher, director of the Institute for Advanced Study (IHS), to come to the study. “ZiB2”. The expert took a critical look at the lock regulation that had already been leaked beforehand – the document is in place “Today” before – and its possible effects on the national economy.
“We cannot afford a second confinement”, this complaining phrase had burned in many businessmen and Austrians during the summer. But is it really so? “It will be difficult for the economy because we will not be able to carry the momentum that we expected until next year,” Kocher said. Businesses will slow down again with the second lockdown.
“We don’t need a lot of new things”
But, argues the expert: “The economy even suffers a high number of infections. It is a situation in which everyone loses. We have to do something.” The decisive factor is the effects of the current situation, which will last until next year.
“This is really difficult, especially for the sectors that were already most affected by the first shutdown,” explains the director of IHS. It is important that measures that have already been put in place, such as fixed-cost subsidies and short-time work, are now available to companies quickly and without bureaucracy. That would be enough. “We don’t need a lot of new things, not even in terms of additional resources,” Kocher said. Postscript: However, only if the lockdown does not last longer than expected.
Soon 100,000 more unemployed
400,000 Austrians are currently unemployed. Soon it could be half a million. Depending on the season, researchers expect around 500,000 unemployed. “That is bad for those affected,” says Kocher. “But it’s only really bad when it solidifies.” Politicians must step in to support this.
“Now putting companies out of business and people out of work would be worse than going into debt now,” the expert said of the government’s support. “In my opinion, there is no good alternative.”
Will the economy recover relatively quickly this time too? It is good that Austria is now better prepared for the consequences. During the block, more will be saved, after which the propensity to consume will increase again. That could help the economy recover.
