This archive report was first published on 13 June 2020.
Published on June 13, 2020, the Austrian government has announced plans to mitigate the economic impact of the coronavirus pandemic. The measures include one-off payments to jobless individuals and increased spending on families with children.
According to Chancellor Sebastian Kurz and Greens party leader Werner Kogler, the coalition government will provide 450 euros ($506) to the unemployed and 360 euros per child under 18. Additionally, the government plans to cut the lowest income tax bracket to 20 per cent from 25 per cent, making the change retroactive to the start of this year.
The government aims to cushion the blow from the pandemic, which has resulted in nearly 17,000 confirmed cases of COVID-19 and 677 reported deaths in Austria. The country's economic output is expected to shrink by 7.2 per cent this year, but a second wave of the virus could deepen the contraction to 9.2 per cent.
