Fiscal Policy: Austria in the Danger Zone

CommentBlogs ♦ Published: October 24, 2013; 20:20 ♦ (Vindobona)

Although Austria´s public finances are relatively stable, the structural problems are growing year after year. The apparent stability involves big dangers.

Fiscal Policy: Austria in the Danger Zone / Picture: ©

For more than three years, Austria´s public sector is one of the profiteers of the crisis in the Eurozone. While ailing countries like Greece, Spain or Portugal have to pay enormous borrowing costs, apparently stable countries like Germany and Austria benefit from low sovereign bond yields. At the moment, the secondary market yield for Austrian sovereign bonds comes at 1.33%. Roughly…