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Read the latest headlines about policies and laws influencing the business and investment environment of Vienna and Austria
Austrian Economic Policy News and Analysis
AUA: Massive Criticism of Government
Owing to the flight ticket tax one feels lied to by the politicians. Contrary to promises, there is no support for restructuring. Not even Vienna Airport is immune from criticism.
November 4, 2010
Unexpected Rise in Research Expenditure
Against the general trend, Austria's economy is increasingly investing in research and know-how.
November 4, 2010
Working Time Flexibility Prevented Mass Unemployment
During the crisis, many German and Austrian companies flexibilized the working hours of their employees. These measures helped to ease the labor market situation.
November 4, 2010
Real Estate Sales: Tax Evasion is Probably Tilted
So far, the property transfer tax has been avoided by a relatively simple construct. The Finance Senate wants to close this legal gap now.
November 3, 2010
Protectionism in Favor of Casinos Austria and Novomatic?
The licenses for lotteries and casinos after 2011 are already reserved for Novomatic and Casinos Austria, is the allegation.
November 3, 2010
IHS Boss Felderer Pleads for Railway Tunnel
The debate about the controversial Koralm tunnel is being enriched. IHS (Institute for Advanced Studies) boss Felderer argues strongly for the infrastructure measure.
November 3, 2010
Arbeiterkammer: Labor Force in Austria Remains Highly Profitable
The representatives of the interests of workers and employees raise criticism on the extents of wage and salary increases with a self-created study. The argument of the companies about the need to build up reserves is incorrect.
November 2, 2010
Strabag CEO Haselsteiner: Koralmtunnel Has To Be Built
Haselsteiner reacts sharply to criticism of the construction of the Koralm tunnel. He sees the infrastructure measure as economically sensible.
November 2, 2010
Identification Required for Savings Account Withdrawals
Since November 1, the implementation of the EU directive on anti-money laundering is in force. Customers therefore need not only a password, but also identification for a savings account withdrawal.
November 2, 2010
Unemployment: Sharp Decline in October
Compared with the previous year, unemployment was reduced by 8%. The decline is attributed primarily to an increase in the demand for temporary workers.
November 2, 2010
ÖBB: Alleged Corruption
An internal document about a meeting of the ÖBB Supervisory Board in 2008 has now appeared. Bribes are openly talked about.
October 29, 2010
Hypo Group: Serious Allegations Against Kulterer
The former airline “Styrian Spirit" is said to have been financed without collateral, according to expert opinion. Kulterer defends himself and points to guarantee commitments by Jörg Haider.
October 29, 2010
AUA Flights to Russia Secured
While the problem of AUA landing rights in Russia has been solved for Lufthansa until March, Austria is being accused of breach of contract by the European Commission.
October 29, 2010
Bank Tax: Only 185 Million Remain for the Federation
In negotiations with the provinces, the federal government surprisingly yields to pressures: proceeds from the bank tax will be divided.
October 29, 2010
Risk of Default of Federal Investments for 330 Million Euro
The State bought high-risk securities in 2007 and 2008. These show a high risk of default since the financial crisis. The State wants to get rid of these securities by next year.
October 29, 2010
Tax on Securities’ Profits: Financial Industry in a Rage
The tax is targeted at the middle class, but it means especially an administrative burden and creates competitive disadvantages, according to the industry.
October 28, 2010
EU Funds to Finance Brenner Tunnel until 2015
The European Commission has extended its partial financing commitment for the Brenner tunnel. However, appropriate measures must be taken soon. Deliberations are still underway at present.
October 28, 2010
Bank Tax: 0.055% Instead of 0.04%
The new "stability tax" has been increased slightly. A tax on derivative transactions will also be applied. The tax will however not be temporary.
October 28, 2010
STRABAG Builds the Koralm Tunnel
The controversial project will be built by the construction group Strabag. The total investment amounts to around 600 million euro.
October 28, 2010
AUA Flight Rights in Russia: EU Proceedings Against Austria
Due to the so far preferential treatment of Austrian Airlines in Russia, Austria is now accused by the European Commission of breach of contract.
October 27, 2010
OMV: Republic of Austria Will Hold On to Its Stake
An informal consultation is said to have been held between the governing parties to keep the government stake in OMV, should there be a capital increase.
October 27, 2010
Is the End of Private Foundations Near?
Legal uncertainties and higher taxes result in little incentive for the creation of new foundations.
October 27, 2010
Bank Tax: Demands for Time Limit Becoming Louder
Financial politicians and banking representatives already argue before approval of the draft law, if the bank tax to be introduced in 2011 is going to have a time limit.
October 27, 2010
Flexible Working Hours: Top Position of Austria in Europe
Both employers and workers benefit from what the crisis achieved, according to the EU Commission. However, additional flexibility does not bring in itself greater equality.
October 27, 2010
HYPO Group: Further Liabilities Necessary?
The Carinthian HYPO Group would suffer massive losses should it sell its real estate in the Balkans. Due to the write-offs, new liabilities of the Republic might be required.
October 25, 2010
New Budget: Details and Reactions
The entire tax package will bring additional revenues for around 1.2 billion euro. There are further saving measures for 1.6 billion euro. Reactions from the economic actors are ambivalent.
October 25, 2010
New Budget, New Taxes
The budget includes a new austerity package, which consists essentially of taxes on mineral oil, tobacco and banks.
October 25, 2010
Bank Austria CEO Cernko: No More Bank Tax Soon
Due to Basel III, location reasons and to safeguard jobs, the bank tax will only be effective temporarily, according to Cernko
October 22, 2010
Vienna: SPÖ negotiates with the Greens
There is no fixed coalition commitment as yet. However, all signs point to a red-green coalition in the federal capital.
October 22, 2010
Switzerland: Pecik and Stumpf Ransom Themselves
While the two investors paid a fine for the case Sulzer, the case Oerlikon is still not finished.
October 21, 2010
Justice: Powerless Against Accounting Frauds?
A poorly equipped Justice is facing an increasingly complex subject, aggravated by insufficient legal regulation.
October 21, 2010
Increase in Mineral Oil Tax likely
Economy Minister Mitterlehner speaks of a possible moderate increase.
October 21, 2010
Criticism of Austria's Allocation of Subsidies
Both the volume and the organization of the allocation of subsidies are susceptible of improvement, experts say.
October 21, 2010
Verbund Group: Capital Increase has Been Determined
The capital increase for the biggest domestic electricity generator will allow large investments in energy infrastructure and thereby accelerate new power generation projects.
October 20, 2010
IMF Considers Recovery as "Moderate and Uneasy"
Growth in Europe seems to be normalizing slowly. Dynamism is missing though, and many vulnerabilities are as yet unresolved.
October 20, 2010
New Westbahn Claims Unjustified Subsidies for the ÖBB
The reason is an amendment to the Public Procurement Act, which allegedly gives preference to the ÖBB.
October 20, 2010
Austrian Federal Railways in Debt Crisis
Several infrastructure projects will increase the debt burden of the Federal Railways dramatically. This could bring considerable effects for the financial situation of the whole Federation.
October 19, 2010
Tax Evaders Targeted by the Ministers of Finance
Budget problems plague the majority of EU countries. In addition to budget discipline, the prosecution of tax evaders is to be addressed.
October 18, 2010
Industry Representatives are Satisfied with New Skilled Workers Regulation
Industry sees the new based immigration model based on criteria as a viable compromise.
October 18, 2010
Slight Fall in Corporate Tax
On the other hand, indirect taxes experienced an increasing trend. Despite tax competition, tax increases are expected due to budget needs.
October 18, 2010
Hypo-Group: Bavarian Lawsuit Against Carinthia
The balance sheet of the Hypo Group -nationalized in 2009- was artificially inflated, according to the accusation from Bavaria.
October 18, 2010
Supervision of Banks: Austria and Russia Intensify Cooperation
A Memorandum of Understanding just signed facilitates cooperation in banking supervision between the two countries.
October 18, 2010
Deal of the Social Partners on Immigration and Social Dumping
Introduction of the "Red-White-Red Card" to combat abuse in the labor market
October 17, 2010
WIFO-Boss Aiginger Calls Government for Economization
Aiginger claims for reforms in the tax system
October 17, 2010
Production Quota of OPEC Remains Stable
There was consensus in the Vienna-based OPEC. Members show their satisfaction with the current situation.
October 15, 2010
Property Tax is Not Unconstitutional
Property tax is constitutionally unobjectionable; concerns about unit values for calculation of income tax for foundations are however maintained for now.
October 15, 2010
Higher Tolls for Trucks Likely
Higher toll rates in the EU countries are likely due to noise, air and traffic disturbances.
October 15, 2010
Mineral Oil Tax: A Cash Cow for the Finance Minister
State revenues for the mineral oil tax have risen steadily since 2000. At that time, motorists paid 2.726 billion euro; this year it will be 3.9 billion euro.
October 15, 2010
Stability Pact with Federal States Has Never Been Met
Deficits of the federal states were too high already since 2001, as well as the deficits of the federation. The surplus of the municipalities couldn´t offset them.
October 14, 2010
CEOs of Stock Exchange Alert: Vienna´s Taxation Plans Cast Investors out
The heads of Vienna´s stock exchange, Schaller and Bohl, fear that the introduction of capital and transactional taxes downgrades Austria´s capital market.
October 14, 2010
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