Austrian Economic Policy News and Analysis

Austria's Diplonatic 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.

2 hours ago

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.

9 hours ago

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

Austria on Course for a Digital and Sustainable Era in Europe

The Austrian federal government has presented a positive mid-year review of its work for the first half of 2025. Chancellor Christian Stocker, Vice-Chancellor Andreas Babler, and Foreign Minister Beate Meinl-Reisinger presented the progress made in implementing the government program and reaffirmed the goal of making Austria future-proof, securing prosperity, strengthening competitiveness, and advocating for a strong Europe, as Chancellor Stocker reiterated during his trips to Italy and France.

July 21, 2025

Austria's Debt Relief: A Focus on Billions

Since the turn of the millennium, Austria has waived debts amounting to around €3.4 billion owed to other countries. This information is based on a recent parliamentary response from the Ministry of Finance, which has drawn particular criticism from the Freedom Party of Austria (FPÖ).

July 16, 2025

Myanmar Takes Over Chairmanship of ASEAN Committee in Vienna

Myanmar has assumed the chairmanship of the ASEAN Committee in Vienna (ACV). Ambassador Min Thein of Myanmar has pledged to continue ongoing initiatives and further strengthen the unity and commitment of the diplomatic missions of the ASEAN countries in Vienna. The handover took place during the 63rd meeting of the committee, which was chaired by Laos' chargé d'affaires in Austria, Viengxay Thammavong.

July 15, 2025

Vienna Airport Defies Global Challenges with Strong Half-Year Results

Vienna International Airport (VIE) experienced solid passenger growth in the first half of 2025, despite a slight decline in June, attributed to the ongoing conflict between Iran and Israel. A total of 14.7 million passengers traveled through Vienna Airport between January and June, representing a 2.4 percent increase compared to the same period last year.

July 15, 2025

ICMPD Director General Michael Spindelegger: Europe Ten Years After the Refuge Crisis

Ten years after the so-called “refugee crisis” of 2015, Europe is taking stock of its migration policy. While enormous progress has been made in addressing the challenges, experts such as Michael Spindelegger, Director General of the International Centre for Migration Policy Development (ICMPD), warn that the region continues to face growing complexities and political tensions.

July 14, 2025

Austria's Former Top EU General Brieger Urges Massive Increase in Military Preparedness

After three years at the helm of the European Union's Military Committee, former Austrian Chief of Staff Robert Brieger returns to Vienna and urges Europe, and Austria in particular, to drastically increase its defense readiness in light of the ongoing threat from Russia. Brieger calls for a paradigm shift—away from the Austrian Armed Forces as a disaster relief force and toward a combat-ready national defense army. A critical examination of Austrian neutrality is “inevitable” in this context.

July 14, 2025

Austria, Bavaria, and Italy Push for Digital Slot System for Brenner Transit

To alleviate the long-standing congestion on the Brenner transit route, Austria and Bavaria are collaborating with Italy to implement a digital slot system for truck journeys. This initiative was agreed upon by Bavarian Minister-President Markus Söder and Austrian Chancellor Christian Stocker during Söder's working visit to Vienna.

July 10, 2025

EU Initiates Deficit Procedure Against Austria: Finance Minister Marterbauer Remains Confident

The European Union has officially initiated an excessive deficit procedure against Austria. This step, based on a recommendation by the European Commission, was decided at a meeting of EU finance ministers in Brussels. The reason for the procedure is that Austria's budget deficit, at 4.7 percent of GDP last year and a planned 4.5 percent this year, is significantly above the 3 percent limit set in the Maastricht criteria.

July 10, 2025

OSCE Secretary General Sinirlioğlu in Paris on the Role of the OSCE in the European Security Architecture

At a time of growing international tensions, the Secretary General of the Organization for Security and Co-operation in Europe (OSCE), Feridun H. Sinirlioğlu, concluded an official visit to Paris with talks with France's Minister for Europe and Foreign Affairs, Jean-Noël Barrot, on the crisis hotspots around Europe and the role of the OSCE.

July 9, 2025

Vienna Remains on UNESCO Red List: World Heritage Site Still Endangered

The historic center of Vienna remains on UNESCO's Red List of endangered world heritage sites. This decision was made on Wednesday at the ongoing meeting of the UNESCO World Heritage Committee in Paris, where the draft decision was adopted without amendments or discussion by collective decision.

July 9, 2025

Vienna as Europe's AI hub: Regional Support and Billions in Investment Expected

Parallel to the establishment of AI Factory Austria, Vienna is intensifying its campaign to host one of up to five planned European “AI Gigafactories.” The official application, a joint project of the federal government, the city, and the business community, was signed on June 20, 2025, by top politicians, including Federal Chancellor Christian Stocker and Mayor Michael Ludwig.

July 7, 2025

Vienna: Still Among the World's Leading Conference Cities

Vienna consolidates its position as a leading global conference destination: after taking first place in the prestigious ranking of the International Congress and Convention Association (ICCA) in May, the city has now achieved second place worldwide for the third time in a row in the latest congress ranking of the Union of International Associations (UIA) for 2024.

July 4, 2025

Microsoft Strengthens Austria's Digital Future: Billion-Euro Investment in New Cloud Region

Technology giant Microsoft officially opened its new cloud region in Austria in the presence of State Secretary Alexander Pröll. With an investment of one billion euros and three data centers in the Vienna metropolitan area, which will go into operation in August, Microsoft is sending a strong signal for the country's digitalization and economic development.

July 3, 2025

Port of Vienna Enjoys Record Year in 2024: Increased Turnover and High Investments Secure Future

Port of Vienna, a key company within Wien Holding, can look back on an exceptionally successful 2024 financial year this summer. Despite a challenging economic environment, the trimodal logistics center significantly increased its revenue and achieved a record operating result. At the same time, extensive investments were made in infrastructure, digitalization, and sustainability to further consolidate its position as one of Europe's most important hinterland hubs.

July 3, 2025

Focus on the Danube: World's Largest Surface Water Monitoring Project Launched

The Danube, Europe's second-longest river and the most international river basin in the world, is the focus of Joint Danube Survey 5 (JDS5), the world's largest surface water monitoring project, which was officially launched in Vienna. Conducted every six years, this comprehensive scientific initiative is a beacon of cross-border cooperation in water management.

July 2, 2025