IHS: Austerity Package Smaller than Expected

Politics ♦ Published: May 9, 2012; 17:03 ♦ (Vindobona)

The Austrian Institute of Advanced Studies (IHS) considers the austerity package to be effective. Proceeds will be smaller than expected, though.

IHS: Austerity Package Smaller than Expected / Picture: © Vindobona.org

According to the director of IHS Bernhard Felderer, the expectations by the Austrian Ministry of Finance on the austerity package are too optimistic. The effectiveness of the package is uncontroversial, but the expected size will not be reached, Felderer considers. Private households and enterprises may react with evasion measures.

Regarding the increase in social insurance fees,…