Chancellor Werner Faymann says he is calling for the repayment of the loan his SPÖ-ÖVP coalition government made to Austrian banks last year during the worst of the crisis. In June the government announced that it would be introducing the Bank Solidarity Tax. “The banks received support when they needed it. Now they should do their part,” justified Faymann. But 500 million euros – what the government predicts it will earn from this new tax- is a far cry from the six billion euros they lent the banks in 2009. Austrian citizens will make up the other 1.2 billion euros in additional tax revenue the government has announced. Austrians can also look forward to the government’s plan to cut 1.7 billion Euros from public spending over the next year. Finance Minister Josef Pröll promised that cuts would happen in “in an economically reasonable and socially bearable” way. Although so far “socially bearable” has spelt a 2.6 per cent dip in funds allocated to labor market initiatives and health issues. All this while the Austrian economy is said to have decrease by 0.3 per cent since last year and unemployment is predicted to reach 7.7 per cent. 2010 is going to be a tough year for Austrians.
Voices from the field:
Paul Schmidt, 34, is Secretary General of the Austrian Society for European Politics, Österreichischen Gesellschaft für Europapolitik, an organization founded in 1991 with the aim of informing the public about the European integration process. As the Austrian government announces cuts in public spending of 1.7 billion euros next year, Schmidt explains what is in store for civil society. Read the full interview here
