Austrian Economic Legal Issues and Insolvencies

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

Joint Statement by Greece and Austria

Greek Prime Minister Mitsotakis and Austrian Chancellor Kurz have issued a joint statement that deals with European refugee policy and the ongoing dispute with Turkey over the natural gas deposit in the Mediterranean.

September 9, 2020

Climate Protection Minister Presents Measures Against Plastic Flood

Climate Protection Minister Gewessler announces a three-point plan to tackle Austria's plastic waste. These measures include a deposit system, a producer's levy and a reusable quota.

September 7, 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

Climate and Energy Goals: Additional Measures Will Be Needed for Austria

Austria's Ministry for Climate Protection recognizes the need for additional protective measures in order to meet the climate targets established by the European Union. An increases of investments in sustainable ideas is demanded.

September 3, 2020

Austrian "Hate in the Net" Draft Law Takes Online Platform in Responsibility

The draft law against "Hate in the Net" obliges online platforms to introduce an effective reporting procedure and to delete unlawful content immediately. The third major point is the issue of a contact person including an address.

September 3, 2020

Schallenberg: "The EU Has Reached a Turning Point in the Relations With Turkey"

Austria's Foreign Minister Schallenberg explains the current relationship between the European Union and Turkey. The recent developments in the easter Mediterranean are testing the relation once again.

September 1, 2020

German-Speaking Finance Ministers Met in Vienna

Vienna hosted the tenth informal meeting of the German-speaking finance ministers. Representatives of Germany, Liechtenstein, Luxembourg, Switzerland and Austria took part in discussions about Covid-19 and the future of taxes.

August 28, 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

Austrian Officials Open 13th IPU Summit of Women Speakers of Parliament

The 13th IPU Summit is held virtually and will cover important topics dealing with countless inequalities women face today. The organization of the event is a common effort between the Austrian Parliament and the United Nations.

August 18, 2020

Austrian Airlines Deal: EUR 450 Million for Vienna Hub Guarantee

The Lufthansa subsidiary will receive EUR 450 million from the Republic of Austria, EUR 300 million of which as a loan guarantee and EUR 150 million as equity.

June 9, 2020

Deal: Bail-out for Austrian Airlines

According to media reports, AUA Austrian Airlines is to receive a total of EUR 600 million and thus retain its Austrian headquarters.

June 8, 2020

OFID - Austria Headquarters Agreement Updated

An amendment to the Headquarters Agreement between the OPEC Fund for International Development (OFID) and Austria in respect of the privileges and immunities granted therein has revised the 1981 Convention.

June 4, 2020

Ryanair's Laudamotion to Close Vienna Base

Laudamotion closes its base in Vienna on 29 May, 300 people lose their jobs. The trade union Vida did not agree to an ultimatum by the airline, which would have brought a new collective agreement with significantly lower wages.

May 22, 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

Tax Consultants and Auditors: Corona Aid Fund for Fee Losses Threatening their Existence

The Austrian Chamber of Tax Consultants and Auditors (KSW), which represents 8,000 Austrian tax consultants and auditors, is setting up a 2 million euro aid package.

May 12, 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 Prohibitions in Austria - Which Shops and Services are still Open?

Many people are confused due to the short-term decision to prohibit access to the customer area of business premises of retail and service companies as well as leisure and sports businesses, and wonder which essential items and services of daily life are still available. Below is a current list in force since Monday, 16 March 2020.

March 17, 2020

City of Vienna Signals Willingness to Talk to Rothschild's Heir

In the conflict over a non-profit Rothschild Foundation from 1908, today's Neurological Centre Rosenhügel (Neurologisches Zentrum Rosenhügel), between Geoffrey Hoguet, the grandson of the donor Alfons Freiherr von Rothschild, who lives in New York City, and the City of Vienna's magistrate, the City of Vienna is now offering its "willingness to talk".

March 12, 2020

Gambling: CEO Neumann Abruptly Left Novomatic

The Group has been in the limelight for a year because of a corruption scandal. Official reasons for the departure are "family reasons", but various media are reporting disagreements with Johann Graf, sole shareholder of the two parent companies Novo Invest GmbH (Austria) and NOVO Swiss AG (Switzerland). Ryszard Presch and Johannes Gratzl are jointly taking over his task.

March 2, 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

Austrian Chancellor Kurz at 10 Downing Street

Chancellor Kurz met with British Prime Minister Boris Johnson in London today. The discussion with Johnson focused on London's future relations with the European Union.

February 25, 2020

Money Laundering: Austria about to Ratify European Council Directive

The Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism, which has already been ratified by 35 member states of the Council of Europe, is now also being discussed in the Austrian National Council.

February 18, 2020

Headquarters Agreement with OPEC Fund Limits Privileges and Immunities

An amendment to the Headquarters Agreement between Austria and the OPEC Fund for International Development (OFID) is intended to bring the 1981 Convention up to date and comparable with modern Headquarters Agreements.

February 18, 2020

US Secretary of Commerce Wilbur Ross in Vienna

The 82-year-old United States Secretary of Commerce Wilbur Ross, who has been in office since February 28, 2017 and was nominated by Donald Trump, visited Vienna and met, among others, US Ambassador Trevor Traina, WKO President Mahrer, Finance Minister Blümel, Environment Minister Gewessler and Economics Minister Schramböck.

February 11, 2020

Digital Tax: Google Charges Customers

The search engine operator Google wants to collect the new digital tax, which has been levied in Austria since January on income from online advertising by international corporations, in its entirety from its advertising customers.

January 31, 2020

Extradition of Oligarch Firtash to United States Remains "Suspended"

Although Austria has already agreed to the extradition of Dmytro Firtash, the latter may remain in Austria, as the resumption application submitted by his lawyers has a suspensive effect. During the meeting with his Ukrainian counterpart Vadym Prystaiko, Foreign Minister Alexander Schallenberg was confronted with the question of the state of affairs regarding Dmytro Firtash.

November 14, 2019

Investing in Austria: New Provisions for the Screening of Foreign Direct Investments

The Federal Ministry for Digital and Economic Affairs recently published a consultation draft for amendments to those provisions. The new regulation is supposed to create more transparency and certainty around FDIs in Austria.

September 19, 2019

Lower Austria as a Business Location Presents Itself at the Alpbach Business Talks

Also this year Lower Austria presented itself at the economic talks of the Forum Alpbach as an innovative business location through its business agency ecoplus and as an outstanding culinary region through the initiative "Thus tastes Lower Austria".

August 29, 2019

New Meinl Bank to Pay 36 Million Euro to Damaged European Land Investors

The legal successor to Meinl-Bank, AAB Anglo Austrian Bank AG, will pay around EUR 36 million to settle the claims of the remaining investor proceedings of approx. 4,000 investors of the former MEL Meinl European Land. Simultaneously, AAB starts a repositioning in which the credit business and the payment transactions are to be reduced, while the advisory business and investment banking are to be focused on.

August 27, 2019

More EU Infringement Procedures Against Austria

Austria is confronted with an above-average number of infringement proceedings by the European Commission. These include not only proceedings concerning the implementation of the Energy Efficiency Directive and the Environmental Impact Assessment, but also failures in the areas of public procurement, financial market regulation and the fight against tax fraud. Now the EC has also opened an infringement procedure concerning the indexation of family allowances.

July 31, 2019

Uber Austria: Suspension in Vienna Over

The ride-sharing service Uber has terminated its suspension in Vienna imposed by the Commercial Court of Vienna and is continuing to operate. As requested, Uber now has a local subsidiary in Austria. With the forthcoming change to uniform rates for taxis and rental cars, the next challenge is already ahead.

July 31, 2019

Devastating - Austria is Only the 21st Most Innovative Country in the World

The World Intellectual Property Organization (WIPO) named Austria's neighbor Switzerland as the world’s most innovative country, during the launch of its latest Global Innovation Index. Austria isn't even in the top 20. Biggest issues are the stagnation of public expenditure on research and development and the increase of economic protectionism.

July 26, 2019

Uber Suspends all Services in Austria Temporarily

Uber Technologies, the driving service provider, is temporarily discontinuing all services in Austria. The reason for this is a temporary order issued by the Commercial Court of Vienna. Accordingly, Uber Technologies requires a subsidiary and a trade licence in order to offer its services.

July 25, 2019

Improvements in the Incorporation of an Austrian Private Limited Company

The incorporation of an Austrian Private Limited Company (GmbH) by foreigners is a multi-stage and time-consuming act. Since the beginning of the year, there has been a significant simplification, so that the founders or proprietors no longer have to appear personally before the notary.

July 24, 2019

Total Ban on Glyphosate in Austria Adopted

Austria is the first country in the European Union to ban the use of the controversial weedkiller glyphosate. The ban is legally controversial and could contradict EU law.

July 4, 2019

Meinl Bank Rebranding - Anglo Austrian Bank Launches with Negative Result of EUR 4.5 Mio

As part of a rebranding, Meinl Bank of Julius Meinl V (59) has renamed itself Anglo Austrian Bank and is relaunching its operations in Vienna with 49 employees in order to respond to the increased demand for qualified asset management in the countries of the former Danube Monarchy and to provide clients with a bridge to the countries and financial markets of Western Europe.

June 28, 2019

Massive Slump in Austrian Exports to Iran

Trade between Iran and Austria is shrinking. Austrian exports to Iran fell by 11.1 % in 2018, as the Foreign Trade Centre Tehran of the Chamber of Commerce reported. In addition, a further decline is expected after the negative GDP growth in 2018/2019. In addition, there are fears of a further currency decline of the rial and rising inflation.

June 24, 2019

German Road Toll Discriminates Against Foreigners - ECJ

The German car toll violates EU law. This was decided by the European Court of Justice in a ruling. This levy is discriminatory, since its economic burden lies practically exclusively on the owners and drivers of vehicles registered in other member states. In Austria, the ruling is received with great pleasure, as the country has won the case through its infringement proceedings.

June 18, 2019

WeWork Cooperation to Facilitate Internationalization of Austrian Start-ups in the USA

The aim of the cooperation between shared workspace provider WeWork and AWS - Austria Wirtschaftsservice is to support innovative Austrian start-ups in their internationalisation in New York and on the US market.

April 26, 2019

Forty Tax Offices Become One Tax Office Austria

The structures will be flattened and work processes made more efficient in such a way that 40 authorities will become a single authority with 33 departments at the 79 existing facilities.

April 10, 2019

Organized International Cum-Ex Tax Fraud in Austria - 183 Million Euros Damage

In connection with dividend stripping, the tax fraud model "Cum-Ex" was created, which deliberately allows the multiple refund of capital gains tax paid only once. According to a report in today's Ö1-Morgenjournal, presumably mainly Arab investors, in cooperation with domestic financial advisors and banks, caused Austrian taxpayers a loss of 183 million euros.

April 9, 2019

Vienna Stock Exchange: High Dependence on UK Traders

In 2018, around 60% of the equity turnover on the Vienna Stock Exchange came from UK trading participants. Hence equity turnover declined by 16.3% compared to the previous year. The most active stocks were Erste Group, OMV and Voestalpine. The SME segment "direct market plus" started with 8 companies, including 4 new listings.

April 3, 2019

Austria to Become Most Sustainable Tourism Destination in the World

Sustainability Minister Elisabeth Köstinger presented the "Plan T - Master Plan for Tourism" in Salzburg. This strategy paper is intended to ensure that Austria not only remains one of the leading tourist destinations, but that this position is further strengthened. For the first time sustainability is anchored as a basic principle for tourism. The strategic realignment of Österreich Werbung (ANTO Austrian National Tourist Office) is also on the agenda.

March 26, 2019

Vienna International Airport Permitted to Build Third Runway

The Austrian Administrative Court has rejected objections from citizens' initiatives and residents and confirmed the authorization for the construction of the third runway at Vienna Schwechat Airport (Flughafen Wien Schwechat).

March 21, 2019

Vienna in Airport Ranking only in Midfield

According to a comparative study entitled "Airport Worldwide Rankings 2018" with 141 airports surveyed worldwide, Vienna International Airport (Flughafen Wien Schwechat) occupies only 49th place.

March 5, 2019

What Does No-Deal Brexit Really Mean for British-Austrian Travel Behaviour?

As of March 29, 2019 at 11.00 p.m. (UTC Universal Time Coordinated) or March 30, 2019 at 00:00 (CET Central European Time) the United Kingdom is no longer an EU member and is to be treated as such by Austria. In order to close the legal gaps in the course of a disorderly Brexit, a comprehensive law is in preparation. This law will be subject to numerous amendments in several Austrian ministries. The main areas affected are civil rights (in particular right of residence, social security), transport and customs. In following we look at the effects of the No-Deal-Brexit on travel behaviour.

February 13, 2019

Israel and Austria Sign Agreement on Continued Business Cooperation

On the sidelines of the state visit to Israel and the Austrian-Israeli Business Forum at the Hotel Intercontinental in Tel Aviv, the Economy ministers from Israel and Austria signed an agreement to accelerate business and entrepreneurial cooperation.

February 6, 2019

Vienna Stock Exchange - New Start for the Third Market with 8 SME Quotations

As already announced by Vindobona.org in conjunction with the corresponding amendment to the Austrian Stock Corporation Act (Aktiengesetz), the VSE Vienna Stock Exchange is now offering two additional and easier options (direct market, direct market plus) for an initial public offering for SMEs as part of the new Third Market.

January 20, 2019

Reform of the Red-White-Red Card - Important Step Against Lack of Skilled Personnel

The Austrian National Council passes a resolution on the reform of the Red-White-Red-Card including the regionalisation of the list of lacking occupations with the aim to strengthen Austria as a business location.

December 19, 2018