Industrial Association Calls for Reforms for Austrian Location
"We are no longer participating in global growth. We have priced ourselves out of the market," says IV President Georg Knill in an APA interview about the location Austria.
IV Chief: Austria No Longer Participates in Global Growth
He is referring to the costs of labour, energy and bureaucracy. Competitiveness is no longer given, and there is a lack of political understanding. It's not about performance, the domestic economy continues to be innovative - it's about the price situation: "We no longer participate in global growth." And: "Many of the actors have not personally experienced the market economy," he says about politics. "They have always been active in protected markets or protected areas."
"Deindustrialisation is taking place." Investments are being cut back, orders are missing, employees can no longer be retained. "All this is happening now. Unemployment in the manufacturing sector will probably continue to rise in 2025." Recently, there have been above-average increases in the number of unemployed in this area. "The cyclical and structural problems are ultimately fatal for prosperity and the welfare state," warns the IV chief. The industry accounts for a quarter of the value added and employment in Austria.
Federation of Austrian Industries Calls for Structural Changes and Industrial Reforms
"Without structural changes, industrial reforms, we will not get out of stagnation," Knill continues. "We need a liberation from prohibitions and regulations, European and especially national. We need entrepreneurial and economic freedom coupled with stable framework conditions." But: "The reliability of politics is not given. This is fatal." Investors would withdraw capital from Austria. The capital market should basically be involved as a pillar in pension security. Knill recently demanded more speed from the government negotiators in an interview with APA.
For example, early depreciation options would be important to make investments attractive again - and, according to Knill, without burdening the budget. "I hope something like this will be included," he said about "100, 120 percent AfA". With the depreciation for wear and tear (AfA), the acquisition costs of an economic good are distributed over the useful life, which reduces the tax assessment basis. "That would be nice for the companies that are still willing to invest in Austria."
"Unfortunately," the ÖVP proposals for labour market reform - keyword: degressive unemployment benefit model, which is supposed to fall below 55 percent of the last receipt, after it was previously somewhat higher than before, to create work incentives - have so far been prevented by the Greens, according to Knill. The system must not become more expensive, as the trade union demands. The part-time share must also decrease and more full-time work must be done, Knill reaffirmed. Incentives are needed for this, as well as for doing more overtime.
(APA/Red)
This article has been automatically translated, read the original article here.