Austrian Economic Policy News and Analysis
Read the latest headlines about policies and laws influencing the business and investment environment of Vienna and Austria
Cernko: Wealthy to Support R&D in Austria
The CEO of Bank Austria calls upon the Austrian government to take into consideration the funding of research and development by wealthy individuals and regard this as part of their “tax duty”.
February 12, 2014
Challenging Business Environment for Croatian Banks
Last year profits of Croatian banks declined more than 73 percent.
February 12, 2014
Hypo Group: Bad Bank Active at Least 10 Years
Austria’s rating by Standard & Poor’s (“AA+”, stable outlook) is currently not compromised. Because of the establishing of the bad bank the debt rate will rise four to six percent.
February 12, 2014
Erste Group: Net Results Below Expectations
Erste Group provides business update for 2013: Improvement in risk costs is outweighed by one-off items and tax effects, impacting net profit
February 11, 2014
Hypo-Disaster: Harsh Criticism from Opposition
The opposition parties have expressed their unanimous criticism about the government failing to come to a joint decision with the Austrian banks and consequently forwarding all costs to the taxpayers.
February 11, 2014
Ukraine: Tough Market for Foreign Banks
The coming two years will be challenging for foreign banks operating in Ukraine.
February 11, 2014
Austria: Hypo Group Becomes Fiasco for Taxpayers
The most expensive solution for the winding up of troubled Hypo Group becomes imminent.
February 11, 2014
Austria: Bank Participation for Hypo Off
A participation model with Austrian banks can be ruled out for ailing Hypo Group. Instead, a more expensive version will be applied.
February 10, 2014
CEE: Still Growth Market in Real Estate Sector
The region is still a growth market in the real estate sector even after the crisis. However, the legal situation in some CEE countries can be a pitfall to real estate companies.
February 10, 2014
FMA: Hypo Group Bankruptcy Incalculable Risk
The government does not dismiss the idea of a bankruptcy of ailing Hypo Alpe Adria. However, the Financial Market Authority (FMA) has expressly warned of this form of downsizing of the state bank.
February 10, 2014
Ukraine: RBI Examines Offers
Raiffeisen Bank International (RBI) has received a total of twelve offers for its Ukranian affiliate.
February 10, 2014
Serbia: Inflation Requires New IMF Agreement
In the light of a devaluation of the Dinar Serbia needs a new agreement with the IMF to improve funding and accelerate the realization of reforms.
February 10, 2014
Spindelegger Insists on Austrian Bank Secret
On Friday the Finance Ministry confirmed to the Austrian Press Agency (APA) that there is “momentum in the field” in regard to disclosure of information about bank accounts of foreigners.
February 10, 2014
Hypo Group Alpe Adria: The War of Nerves Has Begun
The Austrian government puts enormous pressure on the Austrian banking sector and does not exclude Hypo Group´s orderly bankruptcy anymore. The Austrian banking sector insistently warns of this option.
February 9, 2014 · Updated: February 9, 2014; 23:41
Bosnia: Protests Go On
After a number of political step-downs, the protests in Bosnia do not come to an end. The protest movements wants to take back controversial privatizations and the state presidium to step down.
February 9, 2014
Hypo Group Alpe Adria: Sevelda Rejects „Joint Bad Bank“
Karl Sevelda, CEO of Vienna-listed RBI (Raiffeisen Bank International), does not want to become shareholder of the common bad bank for the nationalized lender Hypo Group Alpe Adria.
February 9, 2014
ECB Wants to Supervise All Banks
For the European Central Bank, the current authority does not go far enough. The ECB wants to control all 6,600 banks in the Eurozone.
February 8, 2014
Why Austria´s Finance Minister Has to Go
Austrian Minister of Finance Michael Spindelegger is everything but firmly in his saddle. Behind the scenes, the fight for Spindelegger´s succession has started with full strength.
February 8, 2014
Bosnia: Protest Movement Calls for Revolution
After the most serious riots since the end of the civil war, the violence has stopped for the time being. Nevertheless, the mood is still more than tense.
February 8, 2014 · Updated: February 8, 2014; 13:33
“We Want to Return to the Mainstream”
The new Czech Prime Minister Bohuslav Sobotka announced that the country will become a member of the EU Fiscal Pact.
February 7, 2014
Hypo Group Alpe Adria: Extreme Burden for Austrian State Budget Ahead
The bad news about the nationalized Balkan lender do not break up. In 2014, the Austrian problem bank may cause costs in the amount of € 9bn.
February 7, 2014
Czech Republic. Euro Adoption Causes Dispute Within the Cabinet
Czech Minister of Foreign Affairs Lubomir Zaoralek (CSSD – Czech Social Democrats) wants to adopt the euro as soon as possible. Minister of Finance Andrej Babis rejects that idea.
February 7, 2014
Hungary: Why Orban Faces Another Victory
At the beginning of April, Hungary will hold elections. Despite a high level of dissatisfaction and political frustration, there will be no government change.
February 7, 2014 · Updated: February 7, 2014; 17:59
Bosnia: Protests Turn Into Violence
Due to the extremely tense social situation in the Balkan country, first protests turned into violence.
February 7, 2014
Standard & Poor´s Underlines Poland´s Economic Robustness
The U.S. rating agency S&P keeps Poland´s sovereign debt rating unchanged. The outlook remains stable.
February 7, 2014
Hyp Group Alpe Adria: “No Unnecessary Bankruptcy”
Klaus Liebscher, president of Hypo Group´s supervisory board, points out that Hypo Group´s bankruptcy would involve enormous risks. The Austrian government remains conspicuously calm.
February 7, 2014
Slovenia Under Pressure Again
The International Monetary Fund calls Slovenia to cut public spending radically. The Slovenian government still refrains from unpopular decisions.
February 7, 2014
Romania: Chitiou Has Lost Support from PNL
As reported by Vindobona, Romania´s Minister of Finance has decided to leave the government. According to rumors, the resignation was forced by senior PNL members.
February 7, 2014
Austrian Bad Bank Received Further State Aid
The Austrian Ministry of Finance injected € 150m into KA Finanz, the bad bank of the publicly held Kommunalkredit.
February 6, 2014
Romania: Minister of Finance Quits
Minister of Finance Daniel Chitoiu is said to leave the Romanian cabinet.
February 6, 2014
“Fragile Recovery in CEE Banking Sector”
According to the U.S. rating agency Fitch, the banking sector in Central and Eastern Europe is highly heterogeneous.
February 6, 2014
Hypo Group Alpe Adria: Harsh Criticism on Austrian Government
The Austrian opposition blames the government for concealing the biggest financial disaster in Austria´s history. Governor of the Austrian National Bank Ewald Nowotny is under fire too.
February 6, 2014
Czech National Bank Retains Monetary Strategy
The Czech National Bank keeps the reference rate at the record low and confirms its commitment to continue interventions.
February 6, 2014
Poland: Public Debt Falls Significantly
Due to the nationalization of the pension funds OFE, Poland´s public debt quota goes down to 50% of GDP.
February 6, 2014
Fitch Criticizes European Stress Tests
The rating agency argues that there is still a lack in technical details. Regarding the robustness of the stress tests, Fitch demonstrates skepticism.
February 6, 2014
CESEE: Stuck in Transition or Just a Break?
Despite all difficulties in Central, Eastern and Southeastern Europe, the region remains essential for Austria. The long-term growth potential remains intact.
February 6, 2014 · Updated: February 6, 2014; 13:41
Hypo Group Alpe Adria: Bankruptcy Would Affect Foreign Investors
In case of an unorderly insolvency of the Austrian nationalized lender, not only Austrian creditors would have to absorb losses. The majority of the bondholders are German and Swiss investors.
February 6, 2014
Poland: Interest Rate Remains Unchanged
The National Bank of Poland (NBP) has kept the reference rate stable at 2.50%. As the zloty has begun to weaken, the pressure on NBP is growing.
February 6, 2014 · Updated: February 6, 2014; 10:24
Austrian National Bank: Hypo Bankruptcy Would Cost € 24bn
The nationalized Balkan lender Hypo Group Alpe Adria causes major difficulties. Although the bankruptcy would be the cheapest option for Austrian taxpayers, the Austrian National Bank tries to prevent this scenario by all means.
February 5, 2014
Romania Reaches Agreement With IMF
Romania has met the criteria to receive a stand-by agreement by the International Monetary Fund.
February 5, 2014
Hungarian National Bank: Market Manipulation Caused Fall in Forint
Hungary´s currency is under pressure again. In the last few weeks, the Forint has fallen substantially against the euro.
February 5, 2014
Hypo Group Alpe Adria: Fitch Recommends “Joint Bad Bank”
According to the rating agency, the best alternative is a joint solution between the Austrian state and privately held banks. In return, the bank levy should be reduced, Fitch says.
February 5, 2014
Romania: Remarkable Development Since 2000
The advisory firm pwc has compiled a study on the economic progress of advanced and emerging economies. Poland and Romania are one of the top performers.
February 5, 2014
Roubini: Hungary in Difficulties
A number of emerging countries are facing enormous problems, according to economist Nouriel Roubini. Also countries in Central, Eastern and Southeastern Europe are affected.
February 5, 2014
“Hypo Group Bankruptcy Would Affect RBI Adversely“
According to the Vienna-based Raiffeisen Bank International, both a joint bad bank and Hypo Group´s insolvency have negative consequences on RBI´s share.
February 5, 2014
Austrian Minister of Finance Under Fire
Christoph Leitl, President of the Austrian Chamber of Economics, criticizes the Austrian government sharply. Minister of Finance Michael Spindelegger is put on the defensive.
February 5, 2014
Czech Republic: Rusnok to Become CNB Board Member
Czech President Milos Zeman will appoint former Czech prime minister Jiri Rusnok as new board member of the Czech National Bank.
February 4, 2014
Criticism of Croatia´s Fiscal Policy
Next year, Croatia´s government wants to comply with the EU fiscal rules. According to economists, this aim is not realistic.
February 4, 2014
IMF: Bulgaria May Reach European Standards in 40 Years
According to the International Monetary Fund, the poorest EU member faces a long transition period.
February 4, 2014
Romania: Base Rate at Record Low
Today, the Board of the National Bank of Romania has cut the base rate to 3.50 % from 3.75%. Since July, borrowing costs were cut by 175 bps. Economists think that there will be no further cuts.
February 4, 2014
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