All of a sudden the Austrian Government is waking up to the fact that a country cannot just go on spending money it doesn't have. The mountain of debt is higher than the Grossglockner (Austria's highest mountain) and is becoming more and more difficult to climb. Up to now the country plowed merrily along as if it expected some good fairy to wave a magic wand and make everything Okay again.
The much despised Rating Agencies have sofar rated Austria with their highest positive rating: AAA...
There is now, however the possibility that this may change and panic is breaking out in Vienna.
PURE PANIK IN THE CHANCELLORY is one of the news headlines. Government leaders are falling all over themselves with issuing "Saving Plans"... these are of course strictly in accordance with the political direction of each of the Parties: "Tax the Rich" scream the Socialists, "Increase Retirement Age" suggest the Conservatives. "Sell some Government Properties" suggest others...
Maybe all three suggestions and some others should be not only talked about, but actually implemented.
I am far from a Socialist, but I must agree that what the "Rich" have been able to accomplish with the perfectly legal institution of a "Stiftung" is inexcusable. The amounts of moneys they succeed in depositing there, as well as in Tax free off shore havens, is beyond belief. Why should it be possible for a very rich person to pay, percentage-wise, less tax than a regular earner?
The possibility of retirement at age 58 places a financial strain onto government koffers which is totally unreasonable. Why should a 58 year old, in perfect health, be entitled to a Pension ? Well, they say, we paid into this retirement fund and now we draw from it. The numbers, unfortunately, do not correspond. More and more of the moneys required for pension payments must be drawn from 'General Revenue'...
An unbelievable 10% of all Government spending disappears into the maw of the Austrian Railroad.
There are trains running daily on routes with nary a passenger in them. ( from Bleiburg to Klagenfurt, often observed, 5 railroad cars and 5 passengers is not an efficient way to operate a transportation system.)
The Railroad must be sold to private interests to be operated efficiently.
All the feather bedding demanded and obtained by the Labour Unions simply must be abolished.
Civil Service must be reduced, as must be the number of politicians serving in 4 to 5 levels of Governments.
There are so many other things which "must be done" that this little article would become a book of major proportions.
What does it take to accomplish this?
A democratically elected government with Guts.
Political Parties which do not fight each other to the death, just because they follow different political ideologies. There are pragmatic realities which transcend political ideas.
Every Housewife knows that she can spend only as much money as the family earns, or they soon will be on the dole.
Every businessman knows that he has to watch his "bottom line" and not allow it to slip into the "Red" as otherwise he will face bankruptcy.
Why do Governments not know this simple truth? Because they can always raise Taxes, thereby securing an income without an end... or so they think... They can always borrow money from their own citicens or from other countries... raise taxes and borrow.... both of those are not unlimited sources of funds: The Taxpayer will only remain viable up to a certain limit of taxation, and borrowing has an Interest factor attached to it and the sad truth that borrowed funds must be paid back some time. And if you tell me that a country can always borrow funds from country B to pay back the debt it ows to Country A, then please consider that this is called "Kiting" ... and there too is a limit to how high the "kite" can fly.
Austria, America, Canada, and any other country you may want to name, can, in the long run, only spend what it earns, or, like Greece, it will have to go bankrupt.
The Rating Agencies have Austria under their microscope !
So, as I said at the outset: "There is Pure Panic in the Chancellory"
Hey, can you lend me a Euro ? I'll pay you back some payday.
Bertstravels
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