„We Are at the Tipping Point“

People ♦ Published: January 5, 2012; 18:02 ♦ (Vindobona)

2012 will be a crucial year for Europe and Austria, says the director of the Austrian Institute of Economic Research (WIFO). The coming decade will be coined by debt reduction.

„We Are at the Tipping Point“ / Picture: © WIFO Wirtschaftsforschungsinstitut

For Karl Aiginger, head of WIFO, the countries of the euro-zone face a ten-year lasting phase of debt reduction. There is no option for a quick coup, but it will be a long path of restructuring. “We face a ten year long period of consolidation.” It would be important not only to push for further austerity measures, but also not forget about future and growth investments.