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Public Debt

Slovenian Parliament Approves Creation of Bad Bank

The Slovenian state creates a bad bank in order to restructure the financially stricken banking sector.

October 4, 2012

Slovakia Abolishes Flat Tax

Because of the austerity pressure, Slovakia gives up its flat tax. The corporation income tax rate increases to 23% from 19%.

October 3, 2012

Poland: Interest Cut Expected

The Polish National Bank NBP is anticipated to announce a cut in the base rate. At the moment, the base rate stands at 4.75%.

October 2, 2012

Slovakia: Budget Deficit Decreased Slightly

Last month, the Slovak state deficit was down to € 2.59bn. In August, the deficit stood at € 2.68bn.

October 2, 2012

Fekter: “Greece Shows Progress”

Austria´s Finance Minister praises Greece's efforts to improve its situation.

October 2, 2012

Hungarian Budget Deficit Growing Quickly

According to preliminary data the deficit of the general government sector in the first half of 2012 was HUF 393 billion, 2.8% of GDP. Although the deficit is smaller than last year, the 2012 target will not be met.

October 2, 2012

Serbia to Grow in 2013

The Serbian economist Jurij Bajec explained that the Serbian economy will recover next year. Real GDP growth will reach 2.0%, he says.

October 1, 2012

Austrian Budget Targets Will Not Hold

In August, Finance Minister Maria Fekter underlined that the budget deficit will not exceed 2.9% of GDP. Due to the banking package, the budget deficit will be higher, though.

October 1, 2012

Hungary: Budget Targets Endangered to Fail

In August, Hungary´s budget deficit has almost reached the full year´s level. Analysts doubt whether Hungary may achieve a 2.5% budget deficit this year.

October 1, 2012

Serbia Expects Rising Tax Intake

In order to meet demands of IMF, the Serbian Parliament approved the revised 2012 budget. The tax intake will not solve the country´s problems, economists consider.

September 29, 2012

Czech Deficit in 2013 at 2.9% of GDP

The Czech Government presented the budget bill for 2013. The Maastricht Criteria should be fulfilled.

September 29, 2012

Austrian Public Debt at 75% of GDP

Public Finances 2011: Public deficit at 2.5%, Public debt at 72.4% of GDP. In the first half of 2012, Austria´s public debt level grew by € 6bn.

September 28, 2012

Klaus: Exit Will Not Destroy Eurozone

The Czech President Vaclav Klaus says that a reduction of the member states will not destroy the Eurozone.

September 27, 2012

Czech National Bank Expects More Interest Rate Cuts

The governor of the Czech National Bank Miroslav Singer explained that the monetary easing program will continue.

September 27, 2012

Poland Continues Austerity Program

Today, the Polish Ministry of Finance has issued the government´s final budget bill for next year. The budget deficit is estimated to shrink slightly. Poland´s GDP Expected to Grow by 2.2% in 2013.

September 27, 2012

Slovenia “No Bail-Out Candidate”

Slovenia ´s former Prime Minister Anton Rop is optimistic that the country will manage the crisis.

September 27, 2012

Serbia Asks China for Loan

The Serbian Minister of Finance Mladjan Dinkic asked the Chinese Exim Bank for a € 850m loan in order to realize construction projects. IMF is not satisfied with Serbia´s austerity policies yet.

September 26, 2012

Dacic: „Reforms, Attracting Investments and Starting EU Integration“

The Serbia Prime Minister Ivica Dacic underlined that the government will implement reforms in order to stop the economic crisis.

September 26, 2012

Hungary „Still Obtains Funding from the Financial Market“

Vince Szalay-Bobrovniczky, the Hungarian ambassador in Vienna, emphasized that Hungary is not dependent on the IMF loan. The IMF urges Hungary to reduce its bureaucracy, he says.

September 26, 2012

Austria´s Finance Minister Delighted at Positive Moody's Rating

Maria Fekter: “Our Triple A confirms the reform path we have embarked upon.”

September 26, 2012

Public Debt: New EU Members Are More Flexible

Compared to old EU member states, the new member states have more fiscal leeway to overcome the crisis.

September 24, 2012

Austrian Federal States and Municipalities Record Massive Rise in Debt

Since 2007, the debt level of Austrian federal states rose by 87%. In the same period, the Austrian Federation´s debt was up by 27%.

September 24, 2012

Serbia Attempts to Stop Rise in Public Debt

The Serbian government aims to achieve a balanced buget in 2014. Austerity measures should be sharpened.

September 22, 2012

Bulgaria Aims to Join the Eurozone

Ivan Iskrov, governor of Bulgaria´s National Bank explains that entering the Eurozone would be a long-term priority for the country.

September 22, 2012

Serbia to Privatize Publicly Held Companies

In order to reduce the budget deficit, the Serbian Minister of Finance Mladjan Dinkic plans to sell a part of the state-owned companies.

September 22, 2012

Moody´s Retains Austrian Triple A

The U.S. rating agency also confirms the negative outlook. Austria´s strengths are the growth rates and the low unemployment rate.

September 22, 2012

Breuss: „We Must Feed Them All“

The Austrian economist expresses his concerns regarding the second package for Greece.

September 21, 2012

Slovenia Creates Bad Bank

The Slovenian government aims to lower risky assets of the financially stricken banking sector. A major capital increase may be necessary.

September 21, 2012

Austrian Budget: One Third for Pensions and Interest Spending

The Austrian Audit Court published a report on the budgetary situation today. Last year, expenses “for the past” already came at € 24bn.

September 19, 2012

Costs of Austrian Banking Package: € 2.36bn

Since 2008, the Austrian government has resolved rescue packages worth € 21bn. Expenses totaled € 4.169bn, revenues reached € 1.814bn.

September 19, 2012

National Bank of Slovakia Adapts GDP Growth Forecast

According to NBS, the Slovak economic growth is expected to reach 2.7%. This is higher by 0.2 percentage points than NBS forecasted in June.

September 19, 2012

Croatia´s Fight Against the Recession: More Austerity and Increase in Exports

According to Paul Krugman, the development of Croatia´s economy depends on the performance of the export-oriented industry.

September 14, 2012

Czech Republic Threatened of Downgrade

Because of its instable political situation, the Czech Republic may be downgraded. Debt service costs may increase substantially.

September 14, 2012

Hungary: Difficult Negotiations with IMF

The relation between Hungary´s Prime Minister and IMF is chronically tensioned. Another delay of the conclusions of the negotiations is likely.

September 12, 2012

Polish Public Debt Quota to Decrease

Although the planned budget deficit will not be met this year, Poland´s Finance Minister Jacek Rostowski expects a declining public debt quota.

September 12, 2012

Serbia Lifts VAT Rate

In order to prevent the national bankruptcy, the Serbian government raises the VAT by two percentage points.

September 11, 2012

Slovenian Crisis: Opposition Reassures

Recently, Prime Minister Janez Jansa warned of a national bankruptcy. For the opposition, Slovenia is far from declaring its illiquidity.

September 11, 2012

„I´m Concerned About the Atmosphere in Southeastern Europe“

In an interview with the Austrian newspaper “Presse”, the Croatian Minister of Foreign Affairs Vesna Pusic explains that Croatia still aims to become a member of the Eurozone. The Maastricht Criteria would not be fulfilled yet, she says.

September 11, 2012

Moody´s: Poland Still Has Strong Credit Profile

Despite the economic slowdown, Poland´s credit profile remains robust, Moody´s Assistant Vice President Jaime Reusche told PAP.

September 11, 2012

Kapsch Against Excluding Greece

The President of the Federation of Austrian Industries (IV) thinks that the Austrian pension system shows a substantial savings potential.

September 10, 2012

Nowotny Hopes for ESM

The governor of OeNB (Austrian Central Bank) thinks that the bond purchases are not sufficient. Politics must help ECB, he argues.

September 10, 2012

Austerity Package: Czech Government Asks for Vote of Confidence

After the austerity package was disapproved by the Czech Parliament, the government resubmits the bill to the Chamber of Deputies.

September 10, 2012

Czech Republic: No VAT Increase

The governing coalition failed in seeking approval by the parliament. In order to lower the budget deficit, the government intended to lift the VAT rates.

September 7, 2012

Lithuania´s Rating Confirmed

The rating agency Standard & Poor´s (S&P) kept Lithuania´s sovereign debt rating at BBB.

September 7, 2012

Hypo Group´s Capital Shortfall at € 2.2bn

Today, the Austrian Financial Market Authority (FMA) announced its new estimation regarding the nationalized banking group. Insiders fear that Hypo Group needs even more money.

September 6, 2012

Slovenia: „Irish or Greek Way“

The Slovenian economist Egon Zakrajsek explains that Slovenia´s illiquidity only a question of time. The problem banks should be sold, he recommends.

September 5, 2012

Slovenia „No Problem for Austrian Banks“

Although Austria is the biggest investor in Slovenia, the Austrian banking industry does not fear a national bankruptcy.

September 5, 2012

World Economic Forum: Austrian Competitiveness Moves Up

In the World Economic Forum Competitiveness Ranking, Austria ranks 16th and could move up three places. The public debt quota, the tax quota and the investor protection are the main weaknesses of Austria.

September 5, 2012

Slovakia Records Growing Current Account Surplus

In the first five months of 2012, Slovakia´s current account surplus reached € 1.24bn. Against the reference period of 2011, this is an increase by € 350m.

September 4, 2012

Czech VAT Increase to be Resolved

The Czech government wants to increase the tax intake by € 1.0bn. Economists warn of a deepening of the recession.

September 4, 2012