Austria to provide 38 bln euro aid package

Austria will help with up to 38 billion euros ($42 billion) to secure jobs and keep companies afloat, Chancellor Sebastian Kurz said on Wednesday, joining other European countries providing more funds to keep the coronavirus effects in check.

Nearly 1,500 people in Austria are infected and three fatalities have been confirmed. The country has introduced border controls, minimized air traffic, put ski regions under lockdown, closed its schools and most shops and urged Austrians to self-isolate. "With the clear goal, no matter what it takes, we try to support the people in our country," Kurz told a news conference.

In addition to the already announced 4 billion euro aid package, Austria will provide another 9 billion euros in guarantees and warranties, 15 billion euros in emergency aid and 10 billion euros in tax deferrals, he said. "My political conviction is that the state must be frugal with tax money in good times so that there are opportunities to help in bad times. That time is now," Kurz said.

The 38 billion package equals 9.5% of the country's 2019 gross domestic product. Finance minister Gernot Bluemel issued a draft budget earlier on Wednesday that includes a small deficit instead of the initially hoped-for surplus. He said it was not possible to predict how much further the shortfall will widen. ($1 = 0.9111 euros)