Austria's fiscal policy in a European context

Client/Funding Institution

Austrian Chamber of Labour

Abstract

This study analyses the fiscal policy space in Austria for the coming years in a European context. The focus is on the role of fiscal policy as an essential instrument of a prosperity-oriented economic policy. In recent years, a consensus has increasingly been established in the international debate that the role of fiscal policy as a stabilisation instrument should be upgraded, especially since this would help to prevent negative long-term consequences of rising (long-term) unemployment. Against this background, the study focuses on cyclical aspects of fiscal policy. The structural role of fiscal policy with respect to its influence on material prosperity, quality of life and sustainability aspects requires priority setting where the question is which societal goals are to be achieved primarily by using existing fiscal policy space. In this respect, this study provides some reflections on public investment from a macroeconomic perspective with regard to sustainability aspects related to climate policy.

Duration

January 2020 - February 2020

wiiw team Leader

Philipp Heimberger

wiiw Staff

Philipp Heimberger

Publications

Countries covered: Austria, Euro Area, Germany, Italy

Research Areas: Macroeconomic Analysis and Policy


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