Austria’s finance minister calls for an exit from corona aid

Photo: Flag of Austria (via dts news agency)
Photo: Flag of Austria (via dts news agency)

Berlin (dts news agency) – The Austrian finance minister Gernot Blümel has warned against maintaining massive support for the economy beyond the corona crisis, the aid should only be continued for as long as necessary. “Anyone who believes that states’ crisis interventions should last, says goodbye to prosperity and social sustainability,” said Blümel to “Welt”. “Our social systems can only be financed if we have an efficient social market economy. That is why it is dangerous if the Corona aid becomes permanent.” Blümel addressed not only the aid programs for companies and employees, but also the current suspension of the Stability and Growth Pact for the euro. “At some point we have to go back to a certain normality in the budget, in government spending and in stability policy,” he said.

“If the crisis aid lasts too long, it endangers our prosperity.” At the weekend, ECB President Christine Lagarde and EU Economic Commissioner Paolo Gentiloni warned at the meeting of EU finance ministers not to reduce the corona aid too early. The EU Commission has already announced that the deficit and debt limits of the Stability and Growth Pact will remain suspended until further notice and will not apply again until 2022 at the earliest.