Bonin: Private households must also contribute

VOL.AT - Vorarlberg Online Bonin: Private households must also contribute 9 hours • 2 minutes reading time IHS head Holger Bonin wants to hold private households accountable for the restructuring of Austria's public finances. People currently have more money at their disposal, but economic output has shrunk, he said on Sunday during ORF's "Press Hour": "We'll have to get to grips with that." Bonin also wants to see a contribution from states and municipalities, and he doesn't think an EU deficit procedure is a bad thing per se. The economist calls for "long-term goals" in climate policy. "The state has suffered, debts have risen," Bonin said of the economic development of the past few years. The public sector has stepped in for private individuals, which is now reflected in the budget deficit. But companies also have little room for investment due to high wages. Now, households must also contribute. They are waiting for private consumption to pick up, which, he said, is also a "question of trust." Outlook "not particularly good" From 2026 onwards, the IHS expects moderate economic growth of around one percent annually. However, this increase is also not certain, and the medium-term outlook "not particularly good," according to Bonin: "We do have to worry." He expects "more negative surprises" from the presentation of the financial data for 2024. "Local government deficits will probably be higher than expected," said the economist. However, what is important is how one reacts to an additional budget shortfall. Bonin described the recently reported savings requirement of around €12 billion this year as an "absolute upper limit." States and municipalities must help with savings, but financial autonomy in certain areas should also be discussed. Sustainable measures needed According to Bonin, an EU deficit procedure would not change anything for the time being. Either way, politicians must clearly demonstrate where things are headed. Sustainable measures are crucial. Overall, however, Bonin wanted to remain optimistic: "I think we can do it," he said of budget consolidation. He described the mood in the new government as "constructive," and its approaches as "evidence-based." The German economist added that he himself would prefer not to enter politics, but would rather continue to have an advisory role. Kickl calls for a "transparency report" on asylum The FPÖ (Freedom Party of Austria) viewed the budget on Sunday as being burdened primarily by the areas of asylum and migration. Party leader Herbert Kickl demanded in a press release "a monthly transparency report on total costs." Budget planning also required "comprehensive disclosure of all costs." After all, every ministry must know what it is spending on asylum. Kickl accused the government of "concealment, concealment, and cover-up."