Austrian Economic Policy News and Analysis

Fight Against Human Smugglers: ICMPD Susanne Raab Calls for “Real Alternatives” to Illegal Migration in Brussels

New global strategies against migrant smuggling were presented in Brussels. Susanne Raab, the designated Director General of the International Centre for Migration Policy Development (ICMPD), used the stage of the second international conference of the Global Alliance against Human Trafficking to make a clear plea for legal migration routes and increased protection against human trafficking.

December 18, 2025

Vienna Summit on AI Regulation: Poland Presents Implementation of the AI Act

Central European experts gathered in Vienna to debate the future of artificial intelligence (AI). The high-profile event, entitled “Artificial Intelligence - Global Perspectives. Regulation, innovation and Impact across Industries,” was jointly organized by the Polish and Slovenian embassies in Vienna, with the support of the Diplomatic Academy of Vienna.

December 2, 2025

Austria Finalizes Billion-Dollar Purchase: Twelve Italian Leonardo M-346-FA Jets to Replace Swedish Saab 105

Austria has completed the purchase of twelve Leonardo M-346-FA jets from Italy. This was announced by Defense Minister Klaudia Tanner and Economy Minister Wolfgang Hattmannsdorfer (both ÖVP). The new weapon-capable subsonic jets close a capability gap that had existed since 2020 due to the decommissioning of the Saab 105.

November 30, 2025

EUSALP Annual Forum in Innsbruck Concludes With New Joint Action Plan

Cross-border cooperation in the Alpine region has reached a new milestone. At the General Assembly and Annual Forum of the EU Strategy for the Alpine Region (EUSALP) in Innsbruck, the new EUSALP Action Plan was adopted, setting out the strategy for the next ten years. At the same time, EUSALP, which brings together seven countries and 48 regions, celebrated its 10th anniversary and marked the end of the Austrian-Liechtenstein co-presidency in 2025.

November 26, 2025

Austria On Track: EU Commission Accepts Deficit Plans Despite Surprises

As part of its autumn package for the European Semester, the EU Commission has given Austria a positive assessment of its progress in the ongoing deficit procedure. Despite the expected higher budget deficits, particularly in some federal states, Vienna is certified to be on track to comply with EU requirements. No new requirements are expected for the time being. At the same time, the government's eagerly awaited industrial strategy is coming into focus, with leading economists calling for a “European dimension.”

November 25, 2025

OPEC and GECF Warn of Energy Crisis: Trillions in Investments in Oil and Gas Urgently Needed

At their Sixth High-Level Energy Dialogue in Vienna, the Organization of Petroleum Exporting Countries (OPEC) and the Gas Exporting Countries Forum (GECF) issued an urgent appeal to the international community: in view of record-breaking growth in demand, massive and long-term investment in oil and gas production is essential. Without sufficient funding, there is a risk of a shortage in supply security.

November 23, 2025

India to Host Global AI Impact Summit 2026

India is positioning itself as a global pioneer in responsible and inclusive artificial intelligence (AI). The country will host the India–AI Impact Summit 2026 in New Delhi on February 19 and 20, 2026. This is also being promoted by the Indian Embassy in Vienna.

November 20, 2025

Austrian Banks with Capital Reserves Prove Resilient Despite Downturn

Despite Austria's longest, albeit not deepest, recession since World War II, domestic banks are in robust shape. Thanks to high profits in 2024, most of which were retained to strengthen the equity base, the Common Equity Tier 1 (CET1) ratio rose to an impressive 18.6 percent by mid-2025.

November 12, 2025

Vienna Stock Exchange Launches CEE Thematic Indices on AI, Defense, and Ukraine's Reconstruction

The Vienna Stock Exchange (VSE) is reinforcing its role as a specialist for Central and Eastern Europe (CEE) and has expanded its index offering with three new, thematically focused benchmarks. The indices, which reflect the currently popular investment themes of digitalization, security, and reconstruction, are now being calculated. They offer investors the opportunity to invest specifically in companies in the CEE region that are expected to benefit from these long-term trends.

November 5, 2025

Tenth Anniversary of the ICMPD Migration Conference Calls for a “New International System”

The 10th Vienna Migration Conference (VMC), organized by the International Centre for Migration Policy Development (ICMPD), took place on October 21 and 22, 2025, marking a decade of intensive dialogue on shaping international migration policy. Over 300 delegates from politics, the private sector, academia, think tanks, international organizations, and civil society gathered to discuss sustainable migration management, the recruitment of skilled workers, and the challenges of implementing EU reforms.

October 29, 2025

19th ESPI Autumn Conference at Vienna City Hall: “Europe as a Space Power”

The call for European autonomy and resilience in a rapidly changing global landscape dominated the 19th Autumn Conference of the European Space Policy Institute (ESPI). Under the ambitious motto “Europe as a Space Power – Direction and Priorities for Strategic Action,” European and international stakeholders gathered at the magnificent Vienna City Hall on October 28 and 29, 2025, to discuss concrete ways to strengthen Europe's position in space.

October 29, 2025

High-Level Conference in Vienna Highlights the Strategic Realignment of the Caucasus and Central Asia

A high-level international conference entitled “Shifting Grounds: The Caucasus, Central Asia, and Europe in a New Global Order” was held at the Diplomatic Academy of Vienna, jointly organized by the Center for International Relations and Sustainable Development (CIRSD) and the Nizami Ganjavi International Center (NGIC). The conference focused on how profound geopolitical shifts are redefining the global balance of power and the strategic role of the Caucasus and Central Asia.

October 23, 2025

Novartis Opens Second Biotech Facility in Austria

The pharmaceutical company Novartis has commissioned its second state-of-the-art cell culture facility for the production of monoclonal antibodies in Kundl (Kufstein district). The opening of the facility, which has been invested in with a total of €500 million, along with its sister facility in Schaftenau (Kufstein district), which opened in June 2024, is seen as a strong signal for the Austrian life sciences sector. With this expansion, Novartis is creating around 100 new jobs in Kundl and strengthening its global production capacity.

October 21, 2025

Van der Bellen in the Baltic States: Strong Words for Europe's Security at the EU's External Border

The multi-day trip to the Baltic states by Austrian President Alexander Van der Bellen, together with Doris Schmidauer, began in Lithuania and highlighted the central role of European security and the strengthening of economic relations in the region.

October 20, 2025

Austria Pushes Ahead with Hydrogen Offensive: €275 Million for Four Key Projects

Austria is underpinning its ambition to become the “European hub for green hydrogen” with a massive investment: four key national projects are being funded with a total of €274.8 million. This was announced by the Ministry of Economic Affairs.

October 20, 2025

Austria's Diplomatic Offensive: Meinl-Reisinger Promotes UN Security Council Seat and New Partnerships Among Non-Aligned Countries

During her first trip to Africa following the adoption of Austria's new national Africa strategy, Foreign Minister Beate Meinl-Reisinger promoted a non-permanent seat on the UN Security Council in Kampala, Uganda. In addition to diplomacy, the talks at the summit meeting of the Non-Aligned Movement focused on harnessing Africa's enormous economic potential and strengthening cooperation in the fight against illegal migration.

October 16, 2025

Finance Minister Marterbauer optimistic: 2026 Budget Target of 4.2 Percent Deficit Remains in Place

Despite turbulence in local government, Austria is sticking to its budget target for 2026. At a press conference yesterday, Finance Minister Markus Marterbauer (SPÖ) expressed optimism that the overall government deficit would be 4.2 percent of gross domestic product (GDP), as agreed with the EU.

October 16, 2025

China's Ambassador Qi Mei Meets with Minister Hanke to Discuss Infrastructure and the Silk Road Initiative

Cooperation between China and Austria in important future-oriented areas was the focus of a meeting in Vienna between Minister Peter Hanke (SPÖ) and Chinese Ambassador H.E. Qi Mei.

October 12, 2025

Hattmannsdorfer Calls for Tough EU Action Against Hungary's Special Tax

Austria's Minister of Economic Affairs is urging Brussels to take Hungary to the European Court of Justice because the special tax imposed by Budapest burdens international retail chains such as Spar and Hofer with a discriminatory levy of up to 4.5 percent of net sales.

October 12, 2025

Trial to Begin in René Benko Case Involving Non-Transparent Cash Flows and €30 Billion in Claims

Just under two years after the spectacular collapse of the Signa empire founded by René Benko, the 48-year-old investor is facing a turning point: the first criminal trial begins next Tuesday at the Innsbruck Regional Court. While the judiciary accuses him of concealing assets from creditors, the investigating authorities still consider the “big picture” of cash flows in the opaque Signa structure to be open.

October 12, 2025

Austria With Billion-Euro Deficit in Agricultural Foreign Trade

Imports of agricultural products are rising significantly faster than exports, which is alarming industry representatives. Austria's overall agricultural foreign trade balance is falling at a rapid pace. While export volumes are stagnating, import volumes are growing.

October 8, 2025

Austria's Budget Deficit One Billion Higher Than Expected

The Austrian economy faces far-reaching challenges: while the overall government budget deficit for 2025 is forecast to be one billion euros higher than originally assumed, massive bankruptcies, including that of Süba AG and the Höhrhan Group, are shaking the real estate and automotive supply industries.

October 5, 2025

Austria Focuses on “Continent of Opportunity” with National Africa Strategy

The federal government has given the green light in the Council of Ministers for the development of a comprehensive, nationwide Austrian Africa strategy. The strategy aims to raise relations with the African continent in the areas of economy, security, migration, education, and culture to a new, structured level.

October 2, 2025

Russian Diplomat Expelled Following OMV Espionage Case

Just a few days after a suspected espionage case at the Austrian oil, gas, and chemical company OMV came to light, Austria has declared a Russian diplomat “persona non grata.” The high-ranking employee of the Russian Embassy in Vienna has already left the country.

September 30, 2025

OMV in Espionage Scandal: CEO Alfred Stern Reassures, Adnoc Relationship to Remain Uncompromised

A suspected espionage case at Austria's largest energy company, OMV, has caused a stir in recent days. While the authorities are investigating a long-standing employee suspected of having supplied sensitive data to the Russian secret service, OMV CEO Alfred Stern is trying to smooth the waters. Stern emphasizes that the incident will not strain the long-standing partnership with major shareholder Adnoc from Abu Dhabi.

September 22, 2025

Austria's Confidence in the EU is Dwindling: A Reflection of Global Uncertainty

The mood among Austrians toward the European Union is tense. A recent survey by the Austrian Society for European Policy (ÖGfE) shows that only 61% of respondents are still in favor of remaining in the EU. This represents a significant decline compared to previous surveys and reflects the growing uncertainty among the population.

September 21, 2025

Low-Cost Airlines Retreat from Vienna: Are Higher Prices and Location Disadvantages Looming?

Vienna International Airport is facing challenges as low-cost airlines Wizz Air and Ryanair are drastically reducing their presence. Wizz Air is withdrawing all five of its stationed aircraft and abandoning Vienna completely, while Ryanair is relocating three of its jets. Both companies cite excessive costs in Austria as the reason for this move. This development has reignited the debate about Vienna as a tourist and business location.

September 18, 2025

Austria Fails in Lawsuit Against EU Taxonomy on Nuclear Power and Gas

Austria's lawsuit against the classification of nuclear power and natural gas as sustainable energy sources has failed before the European Court of Justice (ECJ) in Luxembourg. The court upheld the decision of the EU Commission, which had expanded the EU Taxonomy Regulation to include these forms of energy in 2022.

September 10, 2025

Problems in the Austrian Education System as per the OECD: High Expenditure, Low Success

A recent study by the Organization for Economic Cooperation and Development (OECD) entitled “Education at a Glance” paints a critical picture of the Austrian education system. Despite high spending per student—US$16,604 in 2022 compared to an OECD average of US$11,843—Austria lags in key areas.

September 9, 2025

Herbert Kickl Considers Russian Gas as a Solution to the Economic Crisis

Amidst an ongoing economic crisis and rising living costs, FPÖ party leader Herbert Kickl presented his proposed solutions at the latest “summer talks.” His argument centers on a radical change of course in energy policy and far-reaching savings in the national budget.

September 9, 2025

OPEC+ Continues to Turn Up the Oil Tap

The OPEC+ oil-producing countries, led by Saudi Arabia and Russia, have announced a further increase in their crude oil production. From October 2025, daily production will be increased by an additional 137,000 barrels (159 liters each). This move is part of a strategy aimed at gradually reversing previous production cuts and regaining market share.

September 7, 2025

Negotiations on Iran's Nuclear Program: Tehran Hints at Concessions

Iran has signaled its willingness to limit its nuclear program under strict supervision, but in return is demanding the lifting of international sanctions.

September 7, 2025

Bajaj-Teaser Causes a Stir: Will KTM's Future be Manufactured in India?

The relaunch of the long-established motorcycle manufacturer KTM after overcoming insolvency is being overshadowed by new uncertainties. Statements made by Rajiv Bajaj, CEO of Indian major shareholder Bajaj Auto, have sparked a heated debate about the future of the production site in Mattighofen.

September 3, 2025

Prices in Vienna for Public Transport, Parking, and Local Taxes Are Going Up

The city of Vienna has announced far-reaching price increases for public transport, parking fees, and the city tax. These measures, which will come into effect on December 1, 2025, and January 1, 2026, respectively, are intended to help consolidate the city's budget.

September 2, 2025

European Forum Alpbach 2025 Breaks records and Looks to the Future of Europe

This year's European Forum Alpbach (EFA) ended with a new record number of participants. Under the motto “Recharge Europe,” around 4,700 participants from 127 countries gathered to discuss the renewal of Europe and find solutions to the most pressing challenges of our time. The event also marked the 80th anniversary of the forum, which has established itself as one of the leading conferences on the future of Europe.

September 1, 2025

WIFO Chief Calls for Tougher Stance in Tariff Dispute with the U.S.

In the ongoing tariff dispute between the European Union and the United States of America, Gabriel Felbermayr, Director of the Austrian Institute of Economic Research (WIFO), advocates a reorientation of the European negotiating strategy.

August 28, 2025

Industry Concerned About Brain Drain From Austria

A recent study commissioned by the Federation of Austrian Industries (IV) highlights an alarming issue, as highly qualified workers are leaving Austria. While immigration figures overall exceed emigration, the composition of migration flows raises concerns.

August 27, 2025

Austria's Public Education Expenditure in the Lower Middle Range of the EU

A report published today by the European Commission entitled “Investing in Education 2025” shows that public investment in education in the European Union is increasing again, but has not yet reached pre-COVID-19 pandemic levels.

August 27, 2025

Lufthansa Centralizes Power: AUA Loses Authority, But Expects Positive Effects

The Lufthansa Group, which also includes Austrian Airlines (AUA), is planning a far-reaching restructuring of the group that will concentrate more power at its Frankfurt headquarters. Following the plan, the subsidiaries, including Swiss and Brussels Airlines, will relinquish responsibilities starting at the beginning of next year.

August 25, 2025

Broad Criticism, Including from Austria, of New Tariffs Deal Between the U.S. and the EU

The trade deal between the United States and the European Union, which was announced by both sides with pride, may have averted a looming escalation in the trade dispute. Still, it has been widely criticized in political and economic circles. While EU Commission President Ursula von der Leyen and Trade Commissioner Maros Sefkovic defended the agreement as a “breakthrough” and “the best possible outcome,” numerous member states and business representatives, including many voices from Austria, see and feel significant disadvantages for the EU and are calling for renegotiation.

August 20, 2025 · Updated: August 21, 2025; 12:46

AT&S and European Partners Revolutionize Electromobility with Research Project “HiPower 5.0”

In a step forward for the European microelectronics and mobility industry, leading technology companies and research institutions in Europe have launched the EU research project “HiPower 5.0.” Coordinated by Austrian mobility technology company AVL List GmbH and with Austrian microelectronics manufacturer AT&S as a strategic partner, the project aims to develop intelligent and highly compact drive solutions for the automotive and shipping sectors that enable greater efficiency and range.

August 14, 2025

Economic Recovery According to WIFO Still a Long Way Off in Austria

While the economy in the eurozone has largely stabilized, Austria remains in a phase of stagnation, according to the latest economic report from the Austrian Institute of Economic Research (WIFO). Domestic growth is stagnating, the labor market is weakening, and inflation is rising again more sharply. Industry in particular is in a prolonged recession, while only public services are showing momentum.

August 11, 2025

Austria Calls for “Roam Like at Home” for the Western Balkans Too

Austrian state secretaries are calling for equal treatment in roaming charges and appealing to the EU to include the countries of the Western Balkans in the upcoming roaming regulations. Similar to Ukraine, which is to be integrated into the EU roaming area from 2026, the Austrian representatives see the need to give the accession candidates in the Western Balkans a clear perspective in everyday digital life.

August 11, 2025

UNODC: War is Transforming Ukraine's Criminal Landscape

The war in Ukraine has significantly altered the country's criminal landscape and caused considerable social and economic damage. In a report, the United Nations Office on Drugs and Crime (UNODC) examined the development of organized crime in the fourth year of the war and found that criminal groups have adapted their business models to the new reality.

August 6, 2025

Chinese Ambassador QI Mei Strengthens Relations During Working Visit to Salzburg

China's ambassador to Austria, QI Mei, used the Salzburg Festival as an opportunity to strengthen relations between China and Austria. She paid an official working visit to the province of Salzburg, which was marked by political exchange, cultural diplomacy, and economic cooperation.

August 3, 2025

FPÖ Warns of Impending Gas Shortage and Dependence on the U.S.

The FPÖ is sounding the alarm and urgently warning the EU of an impending gas shortage that could be triggered by the Union's climate targets and possible supply stoppages from abroad. In a recent press release, the party once again describes EU climate policy as unrealistic and a threat to Europe's prosperity and competitiveness, warns against the U.S., and defends Russia.

August 3, 2025

EU Approves 1.6 Billion Euros for Comprehensive Reforms in Austria

The European Commission today approved Austria's second payment request for €1.6 billion from the NextGenerationEU recovery plan. In doing so, the Commission confirms that Austria has successfully met the ambitious 67 milestones and targets for the second and third installments.

July 30, 2025

OPEC Fund Development Forum 2025: Global Partners Seek Ways to Build a Stronger Future

The international development community is gathering in Vienna for the fourth OPEC Fund Development Forum. Under the theme “A Transition that Strengthens Our Tomorrow,” more than 500 high-level representatives, including heads of state, ministers, and heads of international institutions, are coming together in the historic setting of the Hofburg Imperial Palace to discuss pressing global challenges.

July 29, 2025

Rubio Received Meinl-Reisinger: Focus on Trade, Global Tensions, and the Transatlantic Partnership

Austrian Foreign Minister Beate Meinl-Reisinger traveled to Washington to meet with her U.S. counterpart, Marco Rubio, to reaffirm bilateral relations and discuss pressing global challenges. The focus was on issues important to Europe, such as transatlantic trade dialogue, the wars in Ukraine and the Middle East, and stability in the Western Balkans.

July 28, 2025

Uganda Opens New Vienna Mission to Power Nuclear Energy Ambitions

Uganda has strengthened its commitment to nuclear energy development with the establishment of a new diplomatic mission in Vienna. This strategic move is primarily aimed at enhancing collaboration with the International Atomic Energy Agency (IAEA) as Uganda accelerates its efforts to harness nuclear power for domestic electricity generation.

July 24, 2025