Austrian Economic Policy News and Analysis

Read the latest headlines about policies and laws influencing the business and investment environment of Vienna and Austria

AI Action Summit in Paris: Strengthening International Cooperation

The Artificial Intelligence Action Summit, held in Paris on February 10 and 11, brought together world leaders, policymakers, and experts to discuss the future of AI. As artificial intelligence continues to shape economies, industries, and societies worldwide, the summit aimed to establish a collaborative and ethical framework for its development. At the invitation of French President Emmanuel Macron, Austrian Chancellor Alexander Schallenberg and State Secretary for Digitalization Claudia Plakolm participated in the discussions.

February 12, 2025

European Commission Sues Seven Member States Including Austria for Failure to Implement the NPL Directive

The European Commission has filed a complaint against Austria and six other EU Member States with the European Court of Justice (ECJ). The reason: these countries have not transposed the EU Non-Performing Loans (NPL) Directive into national law on time.

February 12, 2025

Steyr Arms Pushes Expansion - Austria as a Location in Danger?

The Austrian arms manufacturer Steyr Arms, part of the Czech investment group RSBC since 2024, is planning extensive expansion in the US and European markets. At the same time, the site in Austria is coming under pressure as export licenses are being delayed. While the company management wants to secure the future of the traditional business with new strategic decisions, a relocation could be considered.

February 11, 2025

Chancellor and Foreign Minister Schallenberg Met with "Friends of the Western Balkans" Group and Prime Minister Meloni in Rome

Austrian Chancellor and Foreign Minister Alexander Schallenberg reaffirmed Austria's commitment to regional stability and European unity during meetings in Rome. Engaging with both the "Friends of the Western Balkans" group and Italian Prime Minister Giorgia Meloni, Schallenberg emphasized the strategic importance of EU enlargement and the necessity of fostering robust bilateral relations with key European partners.

February 10, 2025

Construction Prices 2024 in Austria: Moderate Increase Despite Tense Situation in the Construction Industry

Construction prices in Austria rose moderately by 1.3% in 2024 compared to the previous year. This was announced by Statistics Austria in its latest report. While price increases eased over the year, the economic situation in the construction industry remains challenging. Residential construction in particular is suffering from high construction and financing costs, which could have a long-term impact on the labor market and future housing supply.

February 10, 2025

Austria's Initial Federal Deficit for 2024 Better Than Expected

Austria's federal deficit for 2024 ended up being 1.7 billion euros lower than initially forecast, standing at 19.1 billion euros. This positive outcome comes despite economic challenges, with lower-than-expected government spending helping offset revenue shortfalls.

February 9, 2025

Shock for Austrian Foreign Trade: Weak Demand from Abroad Depresses Exports

The Austrian economy is facing a new challenge: exports slumped more sharply in November 2024 than they have for years. In particular, weak demand from Germany and the EU is causing concern - experts are warning of long-term consequences for industry and the labor market.

February 7, 2025

Minister and Chancellor Schallenberg Met with his Luxembourgian Counterpart

Austria and Luxembourg have reaffirmed their commitment to maintaining a rule-based international order. This was the central theme of a recent bilateral meeting between Austrian Chancellor and Foreign Minister Alexander Schallenberg and Luxembourg’s Deputy Prime Minister and Foreign Minister Xavier Bettel in Vienna. The discussions underscored the importance of diplomatic dialogue and international cooperation in addressing pressing global issues.

February 6, 2025

Wiiw Forecast: Economic Growth in Central and Eastern Europe Defies Global Uncertainties

Despite weakening industry, private consumption remains a strong growth driver and makes a significant contribution to the region's economic stability. At the same time, the unpredictable economic policy decisions of the USA under President Trump pose considerable risks for the export-oriented countries in Central and Eastern Europe.

February 4, 2025

Schallenberg Attended EU-Summit Calling for Unity in Trade and Security Policies

European leaders gathered in Brussels for an informal EU summit to discuss pressing issues related to security, defense, and transatlantic relations. Austrian Chancellor Alexander Schallenberg emphasized the need for a united European stance amid growing geopolitical tensions, particularly in response to potential trade disputes with the United States.

February 3, 2025

Austria's Industry and Economy under Pressure: Economic Experts Discuss Solutions

The situation in Austrian industry has deteriorated continuously since mid-2021. The Federation of Austrian Industries (IV) is now issuing an urgent warning about the consequences of this development. “Industry is in a bleak situation,” explained IV chief economist Christian Helmenstein. There is no sign of a recovery shortly, which is seriously jeopardizing the competitiveness of the location and the prosperity of the country.

February 2, 2025

Ex-ÖBB Boss Christian Kern Criticizes German Railways: “It Will Never Work Out Like This”

The ongoing problems at Deutsche Bahn (DB) are again causing sharp criticism. This time, the former head of the Austrian Federal Railways (ÖBB) and former Chancellor of Austria, Christian Kern, is unusually outspoken about the situation of the German state-owned company.

January 29, 2025

Austria's Finance Minister Mayr Must Explain Letter to Brussels in Austrian Parliament

Finance Minister Gunter Mayr is facing a political test. At the initiative of the SPÖ, the Standing Subcommittee on EU Affairs must meet to discuss the letter with which the coalition negotiators wanted to avert the threat of deficit proceedings by the EU. According to regulations, the meeting must take place within the next two weeks. The focus will be on the planned austerity measures amounting to 6.4 billion euros outlined in the letter to the EU Commission.

January 21, 2025

Austria Signs Letter of Intent for Southern Hydrogen Corridor

In a pioneering initiative, Austria, Italy, Germany, Algeria, and Tunisia signed a declaration of intent for the construction of the “SouthH2 Corridor” in Rome today. This pioneering infrastructure project will transport green hydrogen from North Africa to Europe over a distance of 3,300 kilometers and make the continent's energy supply more sustainable and independent.

January 21, 2025

Greens Launch Petition for the Preservation of the Climate Ticket

The Greens have today launched a petition to preserve the climate ticket in its current form. The background to this is speculation that a possible FPÖ-ÖVP coalition is planning to cancel or restrict the annual ticket for Austria's public transport system.

January 15, 2025

Skills Shortage in Vienna: Thousands of Jobs at the City of Vienna Remain Unfilled

The City of Vienna is facing a major challenge: The ongoing shortage of skilled workers and the retirement wave of the baby boomers require massive efforts to continue guaranteeing a functioning municipal administration and services of general interest. Despite extensive recruitment measures, thousands of positions are still unfilled.

January 9, 2025

Energy Partnership: Uniper Secures Natural Gas Supplies from OMV Petrom from 2027

According to insider information, the German energy group Uniper has concluded a long-term supply agreement with the Romanian OMV subsidiary OMV Petrom. From 2027, Uniper will purchase natural gas from Romania, extracted from the Neptun Deep project in the Black Sea. The agreement covers the supply of 15 terawatt hours of natural gas over five years. This corresponds to around 1.5 percent of total German gas imports in 2024.

January 7, 2025

Discussion on Europe's Future after Trump's Re-election at the Burgtheater Vienna

Donald Trump's re-election is causing a stir not only in the USA but also in Europe. While right-wing parties are celebrating Trump's victory as confirmation of their political agenda, liberal forces are concerned about the potential impact on transatlantic relations. It is precisely this area of tension that is the focus of a high-profile panel discussion at the Burgtheater in Vienna.

January 7, 2025

Poland and Austria Network in the Field of Fintech and Finance

The Polish Embassy in Vienna hosted the conference “Poland and Austria: cooperation and exchange of expertise. Fintech and finance” took place. The event brought together many experts, industry representatives, and decision-makers from Poland and Austria. The aim was to network the dynamically growing Polish fintech sector with the stable and well-regulated Austrian financial market and explore potential cooperation areas.

December 18, 2024

OMV Abandons Plans to Sell Exploration Business in New Zealand

Following an intensive review, the Executive Board of OMV Aktiengesellschaft has decided not to pursue the sale process for the exploration and production (E&P) business in New Zealand. OMV New Zealand Limited will, therefore, remain part of the partly state-owned energy company's E&P portfolio.

December 17, 2024

Austria and Nauru: Working Together to Tackle Global Challenges

Austrian Foreign Minister Alexander Schallenberg and his Nauruan counterpart Lionel Rouwen Aingimea met in Vienna for a bilateral meeting. Topics such as climate change, the geopolitical situation in the Indo-Pacific, and global security issues took center stage.

December 17, 2024

OPEC Revises Forecasts and Cadre: Decline in Global Oil Demand Expected

OPEC has revised its expectations for global oil demand in 2024 and 2025 downwards for the fifth time in a row. At the same time, the organization is celebrating the eighth anniversary of the “Declaration of Cooperation” and appointing new leaders.

December 12, 2024

OMV Terminates Gas Supply Contract with Gazprom

OMV has terminated its long-term gas supply contract with the Russian energy group Gazprom with immediate effect. According to OMV, this was due to “fundamental breaches of contract” by Gazprom, in particular, because no gas deliveries have taken place since November 16, 2024. This decision represents a turning point in Austrian energy policy and marks the end of a business relationship that has lasted over 50 years.

December 11, 2024

New Institute in Vienna with Conference on Artificial Intelligence and the Future of Society

The luxury hotel SO/Vienna opened its doors for an event on the technological future: “AI & The Future: The Age of Machines” by a new think tank in Vienna, the Vienna Institute for Global Studies.

November 28, 2024

Focus on European and Global Economic Interdependencies: 21st Vienna Economic Forum 2024

High-ranking representatives from business and politics gathered at the House of Engineers in Vienna to take part in the 21st Vienna Economic Forum - Vienna Future Dialogue 2024. Under this year's motto “Regional economy as part of the European and global economy”, the forum was all about economic and political dialog. The event provided a platform for analyzing the challenges of the present and working together to develop paths for a sustainable future.

November 21, 2024

Austria and Liechtenstein to Chair the EU Strategy for the Alpine Region in 2025

The handover ceremony for the presidency of the EU Strategy for the Alpine Region (EUSALP) took place at Brdo Castle in Slovenia. From January 2025, Austria and Liechtenstein will jointly take over the leadership from Slovenia.

November 19, 2024

Russian Gas Flow to Austria: Stop of Gazprom Deliveries without Noticeable Effects

Despite the cessation of gas deliveries by the Russian energy group Gazprom to the Austrian OMV, the gas flow to Austria remains stable. Deliveries were registered at the important Baumgarten hub in Lower Austria, albeit with a slight reduction compared to previous months.

November 19, 2024

Austria's National Bank Chief: Budget Coffers are Filling Up Again

Robert Holzmann, Governor of the Oesterreichische Nationalbank, sees the high inflation of recent years as a major challenge for Austrian savers. Now that salaries have risen and household budgets are being replenished, he nevertheless urges caution. For a sustainable economic upturn, he says, consumer and investor confidence is essential.

November 10, 2024

OPEC+ Extends Oil Production Cuts by One Month

OPEC+ has decided to extend the voluntary production cuts since November 2023 by 2.2 million barrels per day until the end of December 2024.

November 3, 2024

Raiffeisen Bank International: Consolidated Profit Excluding Belarus, Russia at 856 Million Euros

Raiffeisen Bank International AG (RBI) is successfully continuing its strategy of reducing risks in challenging markets and was able to present a solid performance for the first nine months of this year despite the withdrawal from Russia and Belarus. Adjusted consolidated profit, which was calculated without contributions from these two countries, amounted to EUR 856 million. RBI thus remains stable, while at the same time implementing its withdrawal plan from the Russian business.

October 29, 2024

OPEC Fund Intensifies Global Development Cooperation with New Financing Commitments

The OPEC Fund for International Development has announced significant financing commitments of around half a billion US dollars at the 2024 World Bank-IMF Annual Meetings to support climate action, food security, and infrastructure in various partner countries.

October 28, 2024

AUA Flights to Tel Aviv and Tehran Remain Suspended Due to Escalating Tensions

Austrian Airlines (AUA) is extending the suspension of flights to Tel Aviv and Tehran due to the uncertain situation in the Middle East. Connections to the Israeli coastal city of Tel Aviv are expected to remain suspended until November 25, while flights to Tehran will be canceled until the end of November.

October 28, 2024

Austrian Financial Market Authority Orders Forced Closure of Euram Bank

The Financial Market Authority (FMA) has withdrawn the business license of European American Investment Bank AG (Euram) in Vienna with immediate effect. This follows an extraordinary general meeting at which the bank failed to present a plausible plan for an orderly self-resolution. The bank should have either decided on a capital increase of 25 million euros or presented a credible liquidation strategy.

October 16, 2024

Gas Extraction in Upper Austria: Opportunities and Challenges for ADX Energy's Test Drillings

The planned natural gas extraction in Upper Austria is causing controversy. While the Australian company ADX Energy sees gas as a contribution to national energy independence, environmentalists warn of the ecological and climate policy consequences of new fossil fuel projects.

September 12, 2024

Vienna to Become a Center for Financial Technology: AFT 2024 International Conference

Vienna will once again become the international hub for innovative financial technologies in September 2024. From September 23 to 25, 2024, the sixth edition of the Advances in Financial Technologies (AFT) conference will take place at the Austrian National Bank (OeNB).

September 11, 2024

Foreign Currency Loans in Austria Fall to New Low in Q2 2024

The market for foreign currency loans in Austria continues to decline sharply. The Financial Market Authority (FMA) published a new survey for the second quarter of 2024, which shows a further significant decline in the outstanding volume of such loans.

September 11, 2024

Closing of the European Forum Alpbach 2024: Europe's Future under the Sign of the “Moment of Truth”

The European Forum Alpbach 2024 came to a successful conclusion with a lively discussion between high-ranking representatives of all Austrian parliamentary parties in front of around 500 participants. The final discussion marked the highlight of a two-week forum that once again served as an important platform for European and international dialog.

September 8, 2024

European Forum Alpbach Enters Second Week: A Look Back and a Look Forward

The European Forum Alpbach (EFA) is entering the second week of its high-caliber discussion rounds. Under the motto “Moment of Truth”, the focus is on Europe's challenges and opportunities. While the first few days of the forum have already set important accents, the coming week promises equally exciting insights and groundbreaking debates.

August 27, 2024

UniCredit Bank Austria: Austrian Economy Remains in the Downturn - Hope for Recovery Only in 2025

The economic situation in Austria remains tense and a sustainable recovery does not appear to be in sight until 2025. The latest reports from UniCredit Bank Austria paint a gloomy picture for 2024. Despite some positive signs, particularly in the service sector, the economy is in a prolonged slump. Industry and the construction sector in particular continue to be under great pressure, which is weighing heavily on the overall situation in Austria.

August 22, 2024

Austria's Competition Watchdogs Criticize Concentration on Gas Market

The Federal Competition Authority (BWB) and the regulatory authority E-Control recently presented the second interim report of their joint Electricity & Gas Task Force. This investigation is a reaction to the developments in the Austrian energy markets, which are characterized by strongly fluctuating prices and high market concentration.

August 20, 2024

Alpbach: Between Tradition and the Future - the European Forum Alpbach 2024

The European Forum Alpbach (EFA) celebrated its 80th anniversary in 2024. It once again attracted over 4,000 participants to the small Tyrolean mountain village, which became the center of European discourse for two weeks. Under the general theme of “Moment of Truth”, this year's forum focused on the groundbreaking decisions that Europe must make in the face of multiple crises, from climate catastrophes to political tensions.

August 18, 2024

Austria Investing in the Future: Strengthening STEM Education and Massive Research Funding

Austria is setting standards in the education and research landscape to meet the challenges of the future. With two far-reaching initiatives, the government aims to combat the shortage of skilled workers in the STEM fields (mathematics, IT, natural sciences, and technology) as well as massively promote research and innovation in the country. These measures are intended not only to solve short-term problems but also to secure and strengthen Austria as a business location in the long term.

August 13, 2024

Finance Ministers from German-speaking Countries Adopt Lake Constance Declaration to Strengthen Competitiveness

Finance ministers from Germany, Austria, Switzerland, Liechtenstein, and Luxembourg met in picturesque Vorarlberg, Austria, to adopt the so-called "Lake Constance Declaration". This landmark declaration aims to strengthen Europe's competitiveness in a rapidly changing global economy while safeguarding the continent's prosperity and stability.

August 13, 2024

International Headquarters Vienna: Economic Importance and Future Potential

A recently published study by the economic research institute WIFO on behalf of the Austrian Foreign Ministry illustrates the significant financial impact of international organizations in Austria.

July 31, 2024

Salzburg Summit: Europe's Challenge in the Global Economy

The Salzburg Summit 2024 provided a platform for discussions on the pressing economic and political challenges facing Europe. One of the central debates revolved around the tense relationship with the major economic power China and the resulting impact on European competitiveness.

July 25, 2024

Austrian National Bank Examined the Spread of Crypto Assets in Austria

Cryptocurrencies such as Bitcoin are widely known in Austria, but their actual distribution in private households remains modest. A recent study by the Austrian National Bank (OeNB) found that only 3% of the population own crypto assets. These few owners usually only hold small amounts, which rarely make up more than a third of their total financial assets.

July 16, 2024

Austria's Challenges and Successes in the OECD Report

The OECD has presented its latest country report for Austria. Every two years or so, the Organization for Economic Cooperation and Development analyses each member country as a whole and summarizes the findings of this analysis in a comprehensive report. Austrian policymakers have now taken up this report and are hotly debating it.

July 9, 2024

30 Years of the EU Referendum: A Success Story for Austria

On June 12, 1994, a groundbreaking referendum was held in Austria, in which two-thirds of the population voted in favor of joining the European Union. This decision laid the foundations for a new era of economic, political, and social integration of Austria in Europe. Since its official accession on January 1, 1995, the country has changed considerably and has since benefited from EU membership in many ways.

June 12, 2024

Ukraine's Economic Potential: Analysis by the Vienna Institute for International Economic Studies

In a new comprehensive study by the Vienna Institute for International Economic Studies (wiiw) and the Bertelsmann Foundation, Ukraine is recognized as having enormous economic potential.

June 12, 2024

Austria Promotes Key Projects for Renewable Energies in Central Asia

High-ranking representatives from Central Asia, Europe, and the Middle East as well as private investors are gathering in Vienna at the invitation of the World Bank to hold the International Energy Investment Forum. The event is being held in cooperation with the government of the Kyrgyz Republic and other international financial institutions such as the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB).

June 10, 2024