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Kapsch: Enormous Problems at Austrian Business Location

Published: August 28, 2013; 18:21 · (Vindobona)

President of Federation of Austrian Industries (IV) Georg Kapsch confirms the criticism voiced by President of the Austrian Chamber of Commerce (WKO) Christoph Leitl and several other politicians by the Austrian People’s Party (ÖVP).

Kapsch: Enormous Problems at Austrian Business Location / Picture: © IV / Günther Peroutka

During the forum in Alpbach on Tuesday, Kapsch announced that he shared Leitl’s opinion. However, he would have chosen a different wording. Leitl spoke of Austria having “screwed up” in the past years compared to the European average.

Referring to the Swiss management institute IMD, Kapsch said the Austria had lost grounds in international comparisons in the past six years. According to the survey, Austria had dropped from 11th to 23rd place in the years between 2007 and 2013 while Germany improved its position from 16th to 9thplace.

Kapsch stressed that Austria did not become worse in those years but other countries, particularly the Skandinavian states have become better. The only dramatic thing, he pointed out, was not only the decrease in ranking but the dynamic behind it which could be compared to an inclined place where everything was gaining in speed.

Under Chancellor Schröder, more persons in Germany were integrated in the work process, Kapsch pointed out. Further reasons why Austria has lost in the IMD ranking , according to the President of IV are the tax discussion, the efficiency of the government, the problem of working hours, the pension and education systems, the capital market and the fiscal policy.