The EU Commission Despite concerns from several countries, has continued negotiations on a free trade zone with the South American Mercosur-Alliance completed. After almost 25 years of negotiations, the President of the Commission announced Ursula von der Leyen in Montevideo concluded with Brazil, Argentina, Uruguay and Paraguay.
According to von der Leyen, the agreement will be reached more jobs choice and creating wealth and business through lower tariffs and simpler procedures offer advantages.
Failure of the agreement would be a “bad signal”
The trade agreement is also having a negative impact in Austria (especially in the agriculture) on violent criticism. Still sees WIFO-Chef Gabriel Felbermayr a failure of the Mercosur agreement as “bad signal“, as he emphasized in the ZIB2. “We would continue to watch how China “Gaining market share in Latin America and securing raw materials there that are then no longer available to Europe,” explained the 48-year-old. He also referred to the current industrial recession in Europe and the potential market opportunities in Latin America. Felbermayr acknowledges the conclusion of the contract “high chances” a.
Climate bonus as savings potential
With the ongoing ones Government negotiations The focus is on saving; according to Felbermayer, “broad sections of the population” will feel this. “The Austrians who have more money have to contribute a higher share of the budget restructuring than those who don’t,” he says Basic principle of every austerity policy. However, Felbermayr warns against “Hell come out” to save. It takes “A sense of proportion“, a well-thought-out and credible plan and no “full braking.”“.
Such a plan must long-term elements and focus on structural reforms, emphasizes Felbermayr. He also mentions this as a possible savings potential Climate bonus.