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National Council pro "Euro security shield"

Published: May 19, 2010; 00:00 · (Vindobona)

Social Democrats SPÖ, People Party ÖVP and Green Party members Van der Bellen and Moser vote pro coalition while the freedom party rejects the referendum.

National Council pro "Euro security shield" / Picture: © European Commission

With the votes of SPÖ, ÖVP und the Green Party the state liability limit for banks was reduced by 15 billion euros which will be used for the „protective shield“.

The “protective shield” is introduced to aid struggling Euro countries with a budget of €750b covered by EU and the IMF.

Proposals declined

Several proposals by the opposition were declined during the poll. FPÖ demanded a referendum concerning the bailout plan for Greece, the Green Party insisted on a quick introduction of a bank tax, while BZÖ advocates a stop in lending.

Chancellor Werner Faymann (SPÖ) and vice chancellor Erwin Pröll (ÖVP) again defended Austria’s engagement in Greece’s bailout plans. Pröll was optimistic: “We are capable of acting in Europe”. Faymann wishes for a similarly commitment to avoid future crisis.

Future Generation

Once again the financial transaction cost a debated topic. “Yes, I advocate that we push for a European wide transaction tax”, which will also serve for more transparency says Pröll.

Faymann asks that the crisis is evaluated and lessons are learned. “The important question for European citizens in the upcoming months is: Will the same commitment, which was used to construct the security fund to establish available credits, be used that suchlike crisis will be avoided in the future?" Faymann does not necessarily want to wait for a European decision and even considers to exploit national options. “There is no need to think that things which do not work in the European community cannot be tried in our own country”, he explains.

Learn from consequences

One has to learn from a crisis and control the spread by avoiding jumping from crisis to crisis while being liable in every single one of them. Citizens need to be incorporated during this process while avoiding the limitation of budget consolidations to originate in massive tax increases, says Fayman while referring to the aspired referendum.

He also advocates measures to reduce speculative actions and once again demands a transaction tax, a European rating agency as well as a European regulatory body.

Greece was stabilised, but even more was done through the establishment of the security fund.

In this context it is important that no additional budgetary deficits are created. The funds should be “created” by reducing the liability limit for national banks by 15 billion euros, so the chancellor.

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