Austria: Painful Austerity Measures Ahead

People ♦ Published: March 10, 2014; 07:44 ♦ (Vindobona)

The Austrian public debt level grows massively. The disaster of the nationalized Balkan lender Hypo Group Alpe Adria is not the only reason for the unfavorable situation.

Nowotny: "No alternative to bad bank". / Picture: © Wikipedia / JJ55 (30 March 2008)

This week, the Hypo Group task force has submitted the final report to the Austrian government. Ewald Nowotny, new chairman of the Hypo Group task force, wants to establish a downsizing unit for the ailing lender. In an interview with the Austrian broadcaster ORF, Nowotny stressed that the downsizing unit would be a substantial burden for the public finance. In total, the public debt…