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Austrian Economic Policy News and Analysis
Read the latest headlines about policies and laws influencing the business and investment environment of Vienna and Austria


Austrian Minister of Economics Criticizes Hungary

On the occasion of a bilateral meeting between the Hungarian and the Austrian Minister of Economics Reinhold Mitterlehner repeated his critics regarding Hungarian foreign currency loans.
November 21, 2011


Austrian Central Bank Calls for Rise in Equity for Banks

The Austrian Central Bank (OeNB) prescribes Austrian banks to raise their equity base. By 2016, a further capital base of 3.0% is required.
November 21, 2011


Austerity Measures or New Taxes?

The Austrian government has to reduce its deficits, after having announced the “debt break”. The social democrats call for property taxes.
November 19, 2011


Felderer Pleads for Pay Freeze for Civil Servants

The head of the Austrian Institute of Advanced Studies (IHS), Bernhard Felderer, suggests to stop the salary increase for civil servants next year.
November 19, 2011


„Debt Brake“: Government Tries to Persuade Opposition

This week, the Austrian government announced to insert a maximum debt level into the constitution. The approval of one opposition party is still missing.
November 19, 2011


No Growth in Construction Industry in 2012

Austrian companies fear the effects of the debt brake while they still suffer from the consequences of the recession of 2009.
November 17, 2011


„Debt Brake“ for Austrian Government

As the Austrian government fears a downgrade of its rating, the coalition partners agreed to install a „debt break“. Reactions are ambiguous.
November 15, 2011


Savings Capacity in Austrian Health Care System

Expenses for the Austrian health care system amount to 11.0% of the GDP. The savings capacity has to be exploited, politicians say.
November 12, 2011


Spindelegger: Cost Cuts and Privatizations to Save Triple-A

Annual interest payments would grow by € 3bn if Austria was downgraded by one notch.
November 11, 2011


Austria’s Tax Revenues 7.6% Higher than in 2010

The state’s total revenue was up by 8.2%, while expenditures increased by only 1.08% in the period January to September.
November 11, 2011


Felderer: “Austria’s Triple-A at Risk”

The head of the IHS warns against a spillover of the Italian crisis and calls for a national debt brake.
November 9, 2011


Bawag Sues Linz For € 418m

The U.S.-owned bank now sues the Upper-Austrian capital. Linz has terminated a swap contract based on Swiss Francs.
November 8, 2011


Concerns About Austria´s Finance

Due to missing infrastructure projects, Austria loses € 28bn year by year. The President of the Audit Court, Josef Moser, regards the situation of Austria´s finance as dramatic.
November 7, 2011


Austria Has Third-Highest Pension Costs in Europe

Austria´s expenditures for retires reached 12.7% of ist GDP. Only France and Italy surpass Austria. Sustainability of the domestic pension system improved slightly.
November 7, 2011


Capital Increase for Energie AG

The Upper-Austrian regional energy provider will raise its capital by € 200m.
November 5, 2011


Hungary Rejects Further Bank Charges

Contrary to its initial plans, Hungary will not resolve further aid measures for domestic loan takers. The government is seeking for cooperation with concerned banks.
November 5, 2011


Federal Railways: Debt Burden € 15.2bn

The Austrian Minister of Infrastructure, Doris Bures, announced the amount of debt for Austrian Federal Railways and Asfinag.
November 5, 2011


New Speculations about Austria’s Triple-A Rating

Current rumors about a possible downgrade are unfounded, according to a ministry spokesman.
November 4, 2011


Linz Believes in Victory Over BAWAG

The capital of the province of Upper Austria filed a lawsuit against Bawag, which is held by the U.S. investment funds Cerberus.
November 2, 2011


No Nationalization of Austrian Banks

The head of the Austrian bank holding company Fimbag, Klaus Liebscher, believes that Austrian major banks do not need further capital provided by the state.
November 2, 2011


Austria Intensifies Economic Relations to Serbia

The President of the Viennese Chamber of Economics, Brigitte Jank, meets Serbian Ministers in Belgrade and sees a huge potential for Austrian companies.
November 2, 2011


Austrian Unemployment on the Rise

In spite of its low level compared to other EU-countries, the number of unemployed persons increased up to 300.000 in October.
November 1, 2011


Austrian Trade With China to Double

On the occasion of the state visit of the Chinese President Hu Jintao, the Austrian Minister of Economics stated to aim a deepening of the bilateral economic relations.
November 1, 2011


Nationalization of Banks Not Excluded Anymore

According to the Minister of Economics, Reinhold Mitterlehner, in the worst case scenario a partly nationalization of banks could take place.
October 31, 2011


Nowotny Expects Lower Growth Rates

The head of the Austrian Central Bank (OeNB) Ewald Nowotny lowers the growth estimation for the Austrian economy.
October 31, 2011


State Visit: Hu Jintao in Austria

The Chinese President Hu Jintao arrived in Austria. Today the official meetings with the Austrian President Heinz Fischer and the Government will take place.
October 31, 2011


Orban Attacks Austrian Banks

The Hungarian Prime Minister Viktor Orban wants to release his country from the “debt slavery” and criticizes Austria´s reactions.
October 29, 2011


„Austria´s Triple A Not in Danger“

For the Austrian Minister of Finance, Maria Fekter, the status of the domestic economy is “well prepared”.
October 29, 2011


Croatian Parliament Abolishes 6% Mobile Service Tax

The local subsidiary of Telekom Austria benefits from the abolition of the special tax which caused expenses of € 15.2m in 2010.
October 28, 2011


Emirates Wins Dispute over Air Rights

The Middle Eastern airline was allowed to offer 13 connections per week from Dubai to Vienna.
October 28, 2011


EU Calls for Opening of Labor Markets to Romanians and Bulgarians

The European Parliament wants a solution by the end of 2011 and does not see any negative effects on social welfare systems.
October 27, 2011


Majority of Austrians Opposed to EU Rescue Package

850 respondents were asked their opinion before Wednesday’s summit meeting. 71% believe that the package is disadvantageous for Austria.
October 27, 2011


Verbund´s Subsidiary APG Going Public?

The IPO of Verbund´s subsidiary Austrian Power Grid is being discussed.
October 25, 2011


„Extend Economic Ties to Georgia“

The Austrian Minister of Economics wants to cooperate closer together with Georgia, which offers export opportunities for the Austrian industry.
October 25, 2011


WIFO Claims Property Tax

Karl Aiginger, CEO of the Austrian Institute of Economic Research calls for a significant increase in taxation of real estate and fuel.
October 24, 2011


Number of Staff Ill Decreasing

In Austria, the number of staff ill decreased slightly in 2010. On average, on 12.9 days staff was away sick. Sickness is becoming a main cause for retirements.
October 22, 2011


Slovak Bank Tax Is Going to Hurt Austrian Banks

On Thursday the Slovak parliament has officially approved a bank levy. The tax is one of the measures taken by the government to strengthen the Slovak budget.
October 21, 2011


Collective Bargaining Starts in Trade Sector

After the complicated negotiations between employers and the trade union of the Austrian metal industry, the trade sector continues. 520.000 workers are concerned.
October 19, 2011


Corruption Suspicions Against Penta

The Czech-Slovak investment company, which also bid for the Austrian A-Tec, is accused to have paid bribes to the Czech Minister of Finance.
October 19, 2011


Austrian Budget: 3.2% Deficit in 2012

Today, the Austrian Minister of Finance, Maria Fekter, presented the budget for 2012. The debt quota rises further until 2015.
October 19, 2011


Solution Found: Wage Increase by 4.2%

After heated debates and strike threats, representatives of the Austrian metal industry and the trade union came to an agreement.
October 18, 2011


Metal Industry: New Bargaining Rounds

The Austrian trade union of metal workers and industry representatives could avert a strike. However, a compromise is still not found.
October 17, 2011


€ 4.0bn Capital Requirement for Austrian Banks

After the industrialist Hannes Androsch, also the Vice-President of the Austrian Central Bank (OeNB), Wolfgang Duchatczek, sees a need to support domestic banks.
October 17, 2011


Austrian Metal Industry: Strike Threatens

After a warning strike on Friday, representatives of the metal industry and the trade union still reached no agreement. Now, a full strike threatens.
October 15, 2011


Austria Ranks Third in EU Productivity Study

The report points out structural weaknesses and suggests more effective public spending in the fields of education, research and innovation.
October 14, 2011


Slovakia Approved EFSF

After unsuccessful voting on Tuesday, Slovak lawmakers supported today the enlargement of the European Financial Stability Fund.
October 13, 2011


Innovation Indicator 2011: Austria Has Improved Markedly

In a ranking of 26 industrialized countries, Austria has risen to the eighth place. The R&D ratio has climbed to 2.8% of GDP.
October 13, 2011


Bargaining Suspended – Metal Workers Take Industrial Action

Employees of more than 140 Austrian companies went on strike after negotiators had failed to agree on wage increases.
October 13, 2011


Slovakia Against the Enlargement of the Euro Zone Bailout Fund

After six hours of heated debate Slovak lawmakers failed to approved the European Financial Stability Fund (EFSF).
October 12, 2011


Chamber of Labor Claims Substantial Wage Increase

The Austrian Chamber of Labor calls for a massive rise in wages for metal workers. The union refers to increase profits of the metal industry.
October 10, 2011