Austrian Economic Policy News and Analysis

Austria Presents Financial Budget for 2022

Austrian Finance Minister Gernot Blümel presented Austria's draft financial budget for 2022 to the Austrian Parliament in the form of the annual budget speech. The plan includes tax reforms, budget increases for various ministries, estimates regarding the COViD-19 crisis, and more. Read some of the specific provisions in the budget outlined by the finance minister.

October 14, 2021

Business Immigration Office: Vienna Launches New Service Point for Expats and International Companies

As of today, Vienna has its own service office for international professionals (expats) and companies for matters of residence law as well as consultations.

October 13, 2021

AMS to Provide Support as Companies Struggle to Fill Job Vacancies

Austria's public employment service (AMS) announced that it will be supporting companies with the "AMS Business Tour" initiative. Teams from the AMS will help companies in finding personnel, as the latest employment figures from the AMS show that three out of ten job vacancies currently cannot be filled even after three months of searching. Read more about this new initiative and some of the latest numbers from the AMS.

October 11, 2021

Austrian Government Promises to Provide More Money for Childcare

Austrian Minister for Women and Integration Susanne Raab announced that the federal government will be providing more money for childcare. Read more about what Raab said about this expansion of childcare in Austria.

October 7, 2021

The 250th Anniversary of the Vienna Stock Exchange

The Vienna Stock Exchange recently celebrated its 250th anniversary since it was founded by Maria Theresa. Minister of Finance Gernot Blümel congratulated the stock exchange on its anniversary and advocated for the implementation of a government program and retention periods to incentivize Austrians to invest in the domestic economy. Minister Blümel and Vienna Stock Exchange CEO Christoph Boschan both advocated for educating the public on financial topics. Read more about the Vienna Stock Exchange and what the pair said on its anniversary.

September 14, 2021

"Made in Austria": Ambassadors to Serve as Export Promoters

The Austrian government is calling on its diplomats around the world to promote Austria's export and tourism industries abroad to help the economy recover from the COVID-19 crisis. At the opening event of "ReFocus Austria", Chancellor Kurz, Foreign Minister Schallenberg, and Vice-President of the Federal Chamber of Commerce (WKÖ) Martha Schultz laid out the government's plan. Read about "ReFocus Austria," what these officials said about it, and watch the video of the opening event.

September 10, 2021

Aid Package for Afghanistan Approved by Austrian Federal Government

The Austrian Federal Government has officially approved 18 million euros in emergency aid for Afghanistan that it had previously promised. The aid will go from the Austrian Foreign Ministry's Foreign Disaster Fund (AKF) to the United Nations High Commissioner for Refugees (UNHCR), UN Women, and the UN World Food Program.

September 9, 2021

Are "Green Bonds" also Coming to Austria?

At the European Forum Alpbach, Austrian Finance Minister Gernot Blümel announced that Austria wants to issue a so-called "green bond" in the first half of 2022. The Ministry of Finance and Federal Financing Agency (OeBFA) have already completed the necessary technical work to issue the bonds. Read more about "green bonds" and Austria's plans to begin issuing them.

September 1, 2021

Importance of Economic Relations Between the United States and Austria

The American Chamber of Commerce in Austria (AmCham Austria) presented a new study on the importance of economic relations between the United States and Austria. AmCham also provided a position paper with five key recommendations to the Austrian Minister for Digital and Economic Affairs Dr. Margarete Schramböck and Secretary-General of the Austrian Foreign Ministry Peter Launsky-Tieffenthal. Read about the findings of the study and AmCham's recommendations.

August 23, 2021

City Diplomacy: What Connects the German-Speaking Capitals Berlin, Bern and Vienna

Mayor of Berlin Michael Müller, Mayor of Bern Alec von Graffenried, and Mayor of Vienna Michael Ludwig met in Vienna to exchange experiences and learn from each other. The three mayors drew up a joint declaration that addressed climate change, affordable housing, economic resiliency from the COVID-19 pandemic, and democracy and the rule of law.

August 19, 2021

Blümel: We Are Continuing to Help Those Businesses That Need It

Austrian Finance Minister Gernot Blümel announced that businesses can apply for two types of aid to help mitigate struggles due to the ongoing COVID-19 pandemic and economic crisis. The default bonus II has been adapted and extended until the end of September, and the loss replacement until the end of the year.

August 16, 2021

Arab Ambassadors in Vienna and Economic Relations between their Countries and Austria

The Ambassadors from Egypt, Iraq, Jordan, Morocco, Oman, Palestine, Qatar, Tunisia, and the UAE to Austria provided an economic overview of their countries and their relationship with Austria in an online forum with the Austro-Arab Chamber of Commerce (AACC).

July 11, 2021

Von der Leyen Approves Austrian Economic Comeback in Vienna

During her visit to Vienna, EU Commission President Ursula von der Leyen has delivered the good news that Austria is to receive EUR 3.5 billion worth of EU grants. The budget will be mainly available for investments and reforms in the areas of environmental and digital transformation.

June 22, 2021

GLOBSEC Forum in Slovakia: Heger and Kurz Demand Reforms in Exchange for Economic Aid

At a working meeting and at the GLOBSEC Forum in Bratislava, Slovak Prime Minister Eduard Heger and Austrian Chancellor Sebastian Kurz discussed, among other things, the importance of EU's reconstruction fund and how aid should be distributed. Read more below.

June 16, 2021

EU-Wide Minimum Wages: Kurz and Kocher Reluctant

Austria's Chancellor Kurz and Labor Minister Kocher took part at the EU social summit, which dealt with social injustice in all its facets. Among the possible measures to fight injustices, EU-wide minimum wages could be implemented, which would have an enormous impact on the economy.

May 11, 2021

Rating Agencies with Positive Outlook for Austria

Both Standard & Poors and Fitch have affirmed Austria's AA+ rating although noticing Austria's high spending for Covid-19 measures and assuming weaker economic recovery compared to the eurozone. Read more about the reasons for the ratings below.

May 10, 2021

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