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This is how economic researchers Christoph Badelt (Wifo) and Martin Kocher (IHS) assess the social consequences of the crown crisis. Economists presented the first results of a study at a press conference on Thursday; more details will be released soon.
Government measures such as short-time work, fixed-cost subsidies and family allowances would have “cushioned” many negative consequences, was the tenor. The crisis in the crown should not lead to a social crisis, said Social Affairs Minister Rudi Anschober (Greens).
The social effects are felt most strongly in the labor market, Kocher emphasized. There will be no return to pre-crisis levels before 2024. If unemployment solidifies, it is also a major threat to social security.
85 percent of national debt
There is a novelty this year with the budget, Badelt said. He expects the debt ratio to rise from 70 to 85 percent of gross domestic product. The government’s massive increase in public spending was “a break with all fiscal policy habits,” Badelt said. “And that is absolutely correct in such a situation.”
The goal of the study is to target affected groups and develop an action plan against poverty, Anschober said.
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Martin roithner
Economics editor
