Economic Balance: EU Warns Austria
The Commission of the EU issues an early warning for Austria as the thresholds of three macro-economic indicators were exceeded.
Austria´s economy begins to lose its economic balance. According to a report of the European Union, Austria exceeded the threshold of three economic indicators.
First, Austria´s world market share is declining. Second, the private sector´s indebtendess grows. And third, the public debt quota is stil rising. Nevertheless, the Commission did not enter the second phase of the procedure. So, Austria´s macro-economic data were not analyzed in detail.
According to the commission, these indicators are the reason for the recent financial and public debt crisis. The early warning system should help to coordinate the economic policy more deeply and to recognize economic imbalances earlier.
In spite of rising exports, Austria´s world market share decreased by 14.8% between 2008 and 2010. The threshold is 6.0%. In addition, the debt quota in the private sector rose to 166%, which is ix percentage points above the threshold. Experts consider that the quota would be too high, as group-internal loans and liquid assets are not deducted.
The public debt quota reached 72.0%, which is substantially above the threshold of 60%. As many public authorities were out-sourced in the last years, the official quota is too low, experts say. Moreover, the figure does not contain future obligations