Regional councils Etla anticipates difficult decision-making in regional councils: “At the same time, take a stand on the partially conflicting interests of the municipality, the welfare area and the state finances”

The daily decision of the new regional councils will look harsh alongside the election speeches due to the tight economic framework, Etla writes.

Business In a recent memorandum on next year’s phenomena, the research institute (Etla) predicts that the day-to-day decision of the new regional councils will look bitter alongside the election speeches due to tight economic frameworks.

“Political talk for better services in constituencies is fast becoming a daily reality in regional councils, given the tight financial frameworks and financial pressure of existing institutions. For the first time, politicians are also faced with a situation in which they have to take a stand at the same time on the partially conflicting interests of their municipality, their own welfare area and their state finances, ”the researchers write.

Representatives of the regional councils will be elected for the first time in the regional elections on Sunday, January 23rd.

Etla also anticipates potentially difficult wage negotiations on the part of the public, especially with regard to war.

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“They can still become tricky and it can be hard for politicians not to intervene. The promise to fund higher interest rates with state support is a precedent for this, ”the researchers write.

According to Etla, the decisions on social reform are related to the partial redistribution of funding and decision-making power. The health content and significance of the reform is practically completely open. Both the development of health care before the coronary pandemic and the additional difficulties caused by the coronavirus pandemic are a matter of concern.

“The omicron variant brings more headaches to both central bankers and economic policy makers. The variant is likely to cause, among other things, port closures in China, which will increase supply chain problems. ”

Omron’s transformation is expected to accelerate inflation, which, according to Etla, will become a major economic policy theme in 2022. According to Etla, inflation will be accelerated by the recovery in demand, stimulus packages and the green transition. The authors of the memorandum predicting the outlook for 2022 were ten Etla researchers.

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