VBAG´s Rescue Endangers Austerity Targets

Politics ♦ Published: February 29, 2012; 16:54 ♦ (Vindobona)

In 2012, savings should reach € 576m. However, only write-offs in VBAG cost € 700m. The Austrian government seeks for additional revenues.

VBAG´s Rescue Endangers Austerity Targets / Picture: © Wikipedia / MrPanyGoff

Although the bailout of VBAG has a major impact on the austerity plans, the deficit will not increase, the government alleges. Besides that, Chancellor Werner Faymann and Vice-Chancellor Michael Spindelegger reaffirm that there was no alternative. In the worst-case scenario, the deposit guarantee would have cost € 10bn. Furthermore, guarantees of € 3.0bn would have been necessary,…