Austrian Economic Policy News and Analysis

Austria Sees Potential Global Economic Leadership

Only recently, the Austrian government has announced a comprehensive location strategy, which should enable Austria to position itself among global economic leaders in some particular segments.

May 10, 2021

How Austria Plans its Economic Recovery

The Austrian government has submitted its final plan for the European Reconstruction fund, in which projects for economic recovery are listed. These planned measures will receive funding of over EUR 3.5 billion by the EU. Find out what the areas of focus for the investments are.

May 5, 2021

Austrian EU Commissioner Hahn Presents Funding for NextGenerationEU

The Austrian EU Commissioner for Budget and Administration Johannes Hahn has presented the "engine" of the NextGenerationEU economic recovery plan. NextGenerationEU will offer grants and loans to the member states with a total volume of EUR 800 billion by 2026. Austria will receive around EUR 3.5 billion.

April 21, 2021

Extension of Austria's Internationalization Program "go-international" Announced

Austrian Economics Minister Margarete Schramböck and President of the Austrian Federal Chamber of Commerce (WKO) Harald Mahrer extend the joint internationalization offensive "go-international" and provide EUR 25.6 million for the next two years. The funding will focus on the areas of innovation and technology, value chains and digitalization.

April 20, 2021

Austria Increases Turnover Loss Bonus

Companies, which are experiencing significant revenue shortfall due to the ongoing Covid-19 crisis, can now submit their applications for the Austrian turnover loss bonus for the months of March and April. The total amount available for companies has been increased to EUR 80,000 per month.

April 16, 2021

Austria Works on Comeback Plan for Life After Covid-19

Although the Covid-19 crisis might still be very present currently, the Austrian government already tries to prepare for economic reconstruction. Chancellor Sebastian Kurz and Vice-Chancellor Werner Kogler have presented a plan, which comprises the primary goals of increasing employment, digitally and ecologically transforming the economy and improving Austria as a business location.

April 13, 2021

Covid-19: Austria Ranks Second for Aid Measures in EU

According to recent calculations published by the International Monetary Fund (IMF), Austria ranks second for Covid-19 aid measures among all EU Member States. Only Greece has spent a higher portion of its GDP (13.7%) for aid instruments, while Austria invested 11.7 percent to relieve its businesses and people.

April 12, 2021

Austrian Unemployment Decreases in March

The number of unemployed Austrians has decreased significantly in March compared to the previous month. About 56,000 fewer people have been reported unemployed, while the number of people in training at the Austrian Arbeitsmarktservice (AMS) has increased. This is likely due to the recent measure, which provides training priorities in areas where there is a particular demand for qualified workers.

April 7, 2021

European Union Digital Day: Schramböck Demands Digital Growth

At the European Union Digital Day, Austria's Minister for Digitalization Margarete Schramböck signed two declarations that create better framework conditions for start-ups and promote green and digital transformation. Schramböck demanded the use of more digital technologies in order to "secure European jobs and value creation."

March 24, 2021

Austria's Labor Minister Demands More Education and Training Opportunities

At an informal Employment and Social Affairs Council, Austria's Labor Minister Martin Kocher and his EU counterparts were discussing employment and social policies that address the recovery from the current crisis. Kocher emphasizes the need for education and training opportunities, which will proof to be useful for getting back to economic strength.

March 17, 2021

Increase in Financial Aid for Companies in Austria Introduced

Austria's Minister for Finance Gernot Blümel has presented an increase of measures to alleviate companies from the hardships of the Covid-19 crisis. Funding for the turnover loss bonus has been increased and compensation for vacation days during short-time work has been introduced.

March 11, 2021

Austrian Minister for Economics Met German, Swiss and Liechtensteiner Counterpart

At the Quadrilateral Meeting between the Ministers of Economy from Austria, Germany, Switzerland and Liechtenstein, the topics comprised the impact of the Covid-19 pandemic on national and international economies, global trade policy and digitalization in Europe's single market system.

March 3, 2021

Austria Enters for the First Time as U.S. Exits Top Ten in Bloomberg's Innovation Index

Austria moves up one place to 10th place in the latest Bloomberg Innovation Index, while the U.S. dropped out of a top 10 that features a cluster of European countries. The Bloomberg index analyzes dozens of criteria using seven equally weighted metrics, including research and development spending, manufacturing capability and concentration of high-tech public companies.

March 2, 2021

Schramböck and Baldwin at International Research Conference

At the research conference hosted by the Research Center International Economics (FIW), Austria's Economics Minister Margarete Schramböck had the opportunity to take part in discussions with the star economist Richard Baldwin and a number of other important representatives of international economics research.

March 1, 2021

WIFO Director Badelt Sees Climate Issue as "Biggest Problem for Austrian Economy"

The Austrian Institute of Economic Research (WIFO) director Christoph Badelt emphasizes the need for public discussion of the current climate crisis and demands a "comprehensive transformation process" driven by Austria's Environment Minister Leonore Gewessler in order to battle the ongoing climate change.

February 26, 2021

Corona Short-Time Work in Austria Is Extended

Austria's Labor Minister Martin Kocher has announced a new phase for the so-called Corona Short-Time Work in Austria valid from April 1, 2021, to June 30, 2021. The conditions of the new phase are similar to the current regulations. The aim for after June is to gradually phase-out the short-time work where possible.

February 17, 2021

Deadline for Austrian "Reemployment Promise" Gets Extended

To further support the hard hit Austrian economy, the Minister of Labor and Minister of Tourism have decided to extend the deadline for the so-called "reemployment promise". This allows employers to lay off their employees and agreeing to re-hire them, once the sector is allowed to open up again. The affected employees receives unemployment benefits without any placement activities by the Austrian Arbeitsmarktservice.

February 15, 2021

Naturalizations in Austria Decline Heavily

The number of naturalizations in Austria has also been affected by the Covid-19 pandemic. After nine years of constantly rising numbers, naturalizations have decreased by 15.2 percent in 2020 compared to the previous year. Almost 9,000 people have gained Austrian citizenship, a third of them having Bosnian, Serbian or Turkish citizenship before naturalization.

February 12, 2021

Investment Subsidy Program Gets Extended

The Austrian government has announced an extension of the investment period for which subsidies will be granted. The high demand for the subsidy shows that many companies are hoping for a quick recovery from the current pandemic, which secures important jobs and strengthens Austria as a business location.

January 25, 2021

Brexit: Austria to Receive EUR 16.8 Million to Cushion Impact

To alleviate the likely negative effects of the United Kingdom leaving the European Union, the European Commission has set up a reserve, from which EU member states will receive funding. Austria is entitled to EUR 16.8 million, while other member states, which have closer trade links to the leaving party, will receive more.

January 15, 2021

Further Increase of Investment Subsidy

The Austrian government has decided to increase its budget for investment subsidies. The high demand for this subsidy by companies located in Austria has exceeded the expectations of the government and is therefore adjusted upwards by another EUR 1 billion in order to further promote investments into digitalization, sustainability and other sectors.

November 30, 2020

European Commission Approves Austrian Aid for Railroad Companies

The European Commission has granted Austria its planned subsidies for railroad companies to promote the shift from road transportation to rail road usage. Austria will increase its public aid to, on the one hand, relieve railroad companies of some financial burdens of the last months and to, on the other hand, continue the promotion of railroad rather than road transportation.

November 26, 2020

European Commission Approves Second Fixed Cost Subsidy

The European Commission has approved Austria's request to grant further subsidies to companies particularly impacted by the ongoing pandemic. The so-called Fixed Cost Subsidy II could cover up to 70 percent of the uncovered fixed costs and up to EUR 3 million.

November 23, 2020

Austrian Government Plans Deficit of EUR 22.6 Billion

Due to the ongoing Covid-19 pandemic and the resulting economic crisis, the Austrian government has agreed on a budget that plans with a deficit of EUR 22.6 billion for next year. Estimated lower revenues due to the weak economy on the one side face higher expenditures because of the subsidies for various businesses on the other.

November 20, 2020

Vienna Is the Sixth Largest City in the European Union

After London pulled out and Bucharest moved up, Vienna has consolidated itself in sixth place among the largest cities in the European Union. But who is the new European leader, and who are the other cities ahead of Vienna in the ranking? What are the reasons why living in Vienna is so popular with other Austrians, expats, migrants and refugees?

November 9, 2020

Second Coronavirus Lockdown: Which Rules Apply for your Business in Austria?

The exponential increase of the Austrian COVID-19 infection numbers has made drastic measures necessary. On November 3, 2020, the new COVID-19 Protection Measures Ordinance will come into force and remain in force until at least November 30, 2020. In order to cushion the economic impact, short-time working will be upgraded and loss of sales compensated. The new rules and economic measures for the gastronomy, tour operator, tourism and leisure industry can be found below.

November 2, 2020 · Updated: November 6, 2020; 10:13

Blümel Presents Budget With EUR 21 Billion Deficit

Austria's Finance Minister Blümel presented the budget draft for 2021 to the National Council. Due to Covid-19, a deficit of over 20% is planned to provide enough aid for the struggling economy and job market in Austria. While the Federal Ministers show signs of relief with regard to the major budget increase, the opposition parties are furious.

October 14, 2020

Federal Chamber of Commerce: Lockdown Is Unthinkable and Needs To Be Avoided

The heads of the Federal Chamber of Commerce emphasize the importance of avoiding a second lockdown due to rising Covid-19 cases in Austria. They also demand further support measures for the economy and particularly hope that the EU approves the planned fixed cost subsidy.

October 9, 2020

Schramböck: "Every New Infection Is a Potential Danger for the Business Location"

Federal Minister for Economic Affairs Schramböck empasizes the importance of low infection rates for the business location. She demands more rigid measures for Vienna, which is currently the Covid-19 hotspot in Austria.

October 5, 2020

Eurogroup President Donohoe Met Blümel

New Eurogroup President Donohoe and Austrian Finance Minister Blümel met at a round table discussion on "Europe's Comeback". Topics were the strength of a common currency union and strategies on how to achieve the economic comeback.

September 9, 2020

EU Puts a Hold on Austria's Fixed Cost Subsidies

The European Commission has questioned Austria's newly introduced fixed cost subsidy to the surprise of many Austrian politicians and experts. Companies in the sectors tourism and export were predominantly planned to be subsidized.

September 9, 2020

WKO Secretary General: Labor Market Situation Improves, But Remains Great Challenge

The secretary general of Austria's Federal Chamber of Commerce WKO recognizes a slightly positive trend in the labor market but underlines the importance of ongoing and future economic measures.

September 7, 2020

"Massive New Debt" in 2021

Federal Minister Blümel announces massive new government borrowing for next year in order to tackle the ongoing Covid-19 crisis. He hopes to return to meeting the Maastricht criteria again in the next years.

September 7, 2020

After Discussions in Austria: IHS and WIFO Against Statutory Reduction of Working Hours

Austrian economic research institutes IHS and WIFO are both against a reduction of working hours. According to the experts, training and retraining for the unemployed would be better approaches.

August 26, 2020

Arab - Austrian Expert Forum on the Economic Challenges in Light of Corona Pandemic

The economic obstacles that the Arab world faces due to the wide spread of the coronavirus, the enormous medical efforts that are being made to find a cure for this virus, and the challenges that the economic and trade relations between Arab countries and Austria in particular face in times of the coronavirus, were the main topics that centered around the geneticist and molecular immunologist Prof. Dr. Josef Penninger.

June 22, 2020

Investing: Why Your Company Should Establish a Branch in Austria

Every crisis also opens up opportunities e.g. to revise your current strategy and to develop a new one - and time to consider new markets to expand to. Austria stands out in Europe as a highly developed business location and has weathered the crisis well so far.

May 22, 2020

Corona Short-time Work in Austria: Funds to be Increased to 12 Billion

Minister of Finance Gernot Blümel announced that the budget for coronavirus short-time work will be increased from ten billion to twelve billion euros.

May 19, 2020

War for Global Telecom Infrastructure Supremacy: Vienna first EU Capital with Area-wide 5G Network

While the Third World War is raging backstage between the USA and China for world supremacy in 5G infrastructure, Huawei wins another milestone in Vienna. Digital City Councilor Peter Hanke has set the goal "Vienna should become the first city in Europe with a complete 5G network". The city is supporting the network expansion with 20 million euros.

May 18, 2020

The European Forum Alpbach Gets a New Leadership

Bank manager Andreas Treichl is scheduled to take office as President of the European Forum Alpbach in 2021, succeeding Franz Fischler. Already this autumn, Philippe Narval, Secretary General and Managing Director of the European Forum Alpbach, is to hand over the reins to the entrepreneur and investor Werner Wutscher.

May 14, 2020

Austria and Germany Agree to Open Borders on 15 June

The gradual opening of the borders between Austria, Germany and Switzerland will begin as early as Friday. From May 15th onwards there will only be spot checks at the borders between Austria and Germany, both countries announced. From 15 June, the borders are to be opened completely. Opening to Italy is not an issue for the time being.

May 13, 2020

City of Vienna Gives Away 40 Million Euros for Gastronomy Consumption

This is how the second wave of the coronavirus will be boosted. After two months of corona lockdown, the gastronomy industry is opening up again this Friday, May 15. In order to boost the new start of coffee houses, pubs and restaurants, the City of Vienna is "giving" the 950,000 Viennese households gastronomy vouchers worth 25 or 50 euros (depending on the size of the household). Mayor Michael Ludwig (of the Social Democratic Party of Austria) declared on Wednesday "Yes, we can afford it!

May 13, 2020

Austrian Airlines Extends Short-Time Work and Temporary Cessation of Flight Operations

Due to the global developments in connection with the Coronavirus and the continuing restrictions on travel, Austrian Airlines is extending the short-time working model for its 7,000 employees by a further month until May 19, 2020. Also, Austrian Airlines prolongs the cessation of its regular scheduled flight operations for an additional two weeks until May 17, 2020.

April 17, 2020

Tyrol Lifts Coronavirus-Quarantine

Tyrol is still under massive criticism and threat of a class action lawsuit from Germany and some Scandinavian countries because the authorities in the Tyrolean ski resort of Ischgl took quarantine measures very late, although warnings from these countries had already been issued. Today Tyrol's Governor Günther Platter announced during a video press conference that Tyrol would end its self-isolation.

April 6, 2020

Federal Chancellor: "The situation is still serious"

Austrian government presents details of the aid package designed to save jobs and businesses.

March 26, 2020

Budget Statement: Do What Is Necessary

Finance Minister Blümel: "No one knows how long this crisis will last. No one knows what effects it will have. But we do know that we will do everything we can to maintain the health of Austrians, to secure jobs and to carry the location through the crisis. Whatever the cost."

March 20, 2020

Austrian Government Says It is Prepared to Pump Virtually Unlimited Money into Economy

The Federal Government announced today that an aid package of up to 38 billion euros is being prepared to deal with the consequences of the coronavirus.

March 18, 2020

Coronavirus Crisis in Austria: Four Billion Euro Package for the Economy

The Austrian government today cancelled the budgetary "zero deficit" for 2020 and announced the provision of four billion euros for immediate measures.

March 14, 2020

What Vienna Can Learn from Wuhan

The Chinese authorities learned from the SARS crisis of 2003-2004 and acted quickly and decisively to contain the threat of the new COVID-19 virus to public health. The rapidly increasing number of cases of infection has put enormous strain on the local health system. An unprecedented rescue mission of a population six times the size of Vienna and a nationwide campaign against the epidemic began. Since the end of February, the number of confirmed new cases in Wuhan has been declining.

February 29, 2020

Austrian Coronavirus Summit: Population to Participate in Containment

In a meeting of Federal Chancellor Kurz, Health Minister Rudolf Anschober and Interior Minister Karl Nehammer with the state governors in the Federal Chancellery, agreement was reached on uniform nationwide guidelines for dealing with the coronavirus. The Chancellor appealed to the population to actively participate in the containment of the virus.

February 28, 2020

Business with China Slumps: Chamber of Commerce Sets Up Coronavirus Hotline

Because of the coronavirus crisis, the Austrian Federal Economic Chamber (WKO) is now also reacting and setting up an auxiliary hotline for the approximately 1,000 affected companies in the Austrian-Chinese trade.

February 23, 2020