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Federation of Industries Warns Against Wrong Location Policy Decisions

Published: September 20, 2019; 11:25 · (Vindobona)

In the context of the current election discussions, the Federation of Austrian Industries (Industriellenvereinigung) appeals to the political rationality of all parties with regard to location not to take short-sighted and ill-considered decisions.

Neumayer: Populist clientele politics can become an expensive boomerang - the future cannot be sold for votes - economists warn against election gifts. / Picture: © IV Vereinigung der Österreichischen Industrie (Industriellenvereinigung) / Michalski

"The economy is weakening, the challenges for people, companies and business locations are increasing. There is no room for short-sighted, ill-considered decisions, supported by clientele politics, made in the heat of the election campaign", Christoph Neumayer, Secretary General of the Federation of Industry, once again appeals to the future political rationality of all parties.

Populist decisions could prove to be a boomerang worth billions, which will sooner or later hit people and companies with full force.

"There are a whole range of important future topics - education, research, infrastructure, care, climate protection, health and pension systems - for which sustainable, well thought-out overall concepts are needed.

Piecemeal work does not get the country any further, on the contrary: Those who now distribute money on the devil's earth show deterrent electoral tactics and sell the future of our children for supposed votes. Future federal governments would have no room for manoeuvre for real reforms," Neumayer points out.

The problem of this lack of sustainability and consumption at the expense of future generations is also underlined by renowned economic researchers.

Just recently, Christoph Badelt, head of the Economic Research Institute (WIFO), warned urgently against distributing "voting sugar", criticised the lack of an overall concept and called for structural reforms.

The same goes for IHS boss Martin Kocher, whose criticism is aimed at populist-motivated pension increases without any consideration for the long-term financial viability of the system.

"The parties represented in the National Council would do well to take all this very seriously in terms of a responsible location and employment policy. Otherwise the citizens will pay the price in the long run - in the form of job losses and loss of prosperity," concluded the Secretary General of the Federation of Austrian Industries.