Increase of Budget for Investment Subsidies to EUR 2 Billion

PeoplePoliticians ♦ Published: September 23, 2020; 11:05 ♦ (Vindobona)

The Austrian Government has announced a budget increase for investment subsidies. A high demand and investment volume in the first three weeks of the application period has lead to this decision that is welcomed by the Federal Chamber of Commerce.

Federal Minister Schramböck announces a budget increase for investment subsidies by EUR 1 billion. / Picture: © Bundeskanzleramt (BKA) / Andy Wenzel

The federal government is massively increasing its funding to boost investment activity in Austria.

An additional EUR billion will be made available for investment incentives. This means that EUR 2 billion are available to promote new investments in companies.

"These funds - which will be paid out in the form of non-repayable grants - are intended to motivate companies to make more new investments and thus send a clear signal of confidence in the investment location," emphasizes Harald Mahrer, President of the Austrian Federal Economic Chamber WKO.

Karlheinz Kopf, Secretary-General of the Chamber of Commerce adds:

"This additional motivational billion will make an important contribution to Austria's severely battered economic engine. Because investments are the basis for prosperity and growth, they will strengthen our enterprises, secure and create employment ."

The subsidy for new entrepreneurial investments, which can be applied for since the beginning of September, is 7 percent, for investments in the areas of health, digitalization or sustainability even 14 percent.

The investment bonus can also be applied for in addition to existing environmental and green electricity subsidies.

"Boosting investment is therefore also an important contribution to climate protection," concludes Mahrer.

Margarete Schramböck, Federal Minister for Digitalization and Business Location, states:

"In Austria, over 12,000 applications were submitted in the first three weeks, which corresponds to a potential investment volume of EUR 11.12 billion. I am pleased that we are able to provide another EUR 1 billion for investments by our companies. These investments create growth and safeguard jobs in Austria."

"What I am particularly pleased about is that about one in four applications (3,973) has a digitalization aspect. This is particularly important at this time, because digitalization is the vaccine for our domestic economy," said Schramböck.

She concludes:

"What is important is that all companies can continue to submit applications to AWS (Austria Wirtschaftsservice Gesellschaft) without interruption. The funding commitments will be made after the budget increase has been announced."