Reuters: Bankruptcy News: Austria ups public spending after Alpine goes bust

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Austria ups public spending after Alpine goes bust Jun 22nd 2013, 20:13 VIENNA, June 22 | Sat Jun 22, 2013 4:13pm EDT VIENNA, June 22 (Reuters) - Austria will raise public spending by 500 million euros ($657 million) a year to stimulate growth after the shock insolvency of building firm Alpine Bau, the country's chancellor said on Saturday. The country's biggest insolvency since the Second World War, announced on Wednesday, saddled Austrian taxpayers with losses from debt guarantees and put 5,000 jobs at risk. "In times like this, as the crisis is far from overcome, we must maintain a decisive policy and fight for every job," chancellor Werner Faymann told a provincial meeting of his Social Democrat party, according to the Austria Press Agency. "We will therefore raise our investments in the economy from 4.5 billion by a further 500 million euros a year." He said the extra money, which would come from various reserve funds, would mainly be spent on housing, childcare, railway expansion and tunnel safety. Austria has the European Union's lowest unemployment rate. Alpine bau's insolvency dealt Spanish parent FCC a hit of 289 million euros after tax. ($1 = 0.7612 euros) (Reporting by Georgina Prodhan; Editing by Andrew Heavens) Link this Share this Digg this Email Reprints

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