Nowotny: „Austria is Safe“

Published: May 23, 2012; 19:08 · (FriedlNews)

The governor of Austria´s Central Bank (OeNB) Ewald Nowotny asserts that the economic stability in Austria is substantially better than in other regions of the Eurozone.

“We face difficult times at the moment.” the governor of OeNB states. In the last OECD report, the Eurozone is said to be a severe danger for the recovery of the global economy. The OECD warned of a vicious circle in Europe. The mix of austerity policies, public debt and weak banks would be dangerous. Nowotny admits that this situation leads to a “substantial degree of nervousness”.

Nevertheless, Nowotny emphasizes to differentiate between different countries of the Eurozone. “We have certain countries and segments in the Eurozone, which are actually problematic. But there are also countries, where the real economy performs very well, such as Austria.” Correspondingly, the governor of OeNB is more optimistic for Austria and announced to upgrade the next economic forecast. In the last analysis, OeNB anticipated an economic growth rate of 0.7% in 2012. A “solid growth rate” of 1.0% would be more realistic, he thinks. “We are safe.” Nowotny underlined and warned of excessive pessimism.

Whether Greece should stay in the Eurozone or not mainly depends on the Greeks themselves, Nowotny said. Also the Greek elections in June are a crucial factor. However, Nowotny refused to give a clear answer. “We put effort in solving the difficult situation reasonably.”