Federation of Austrian Industries pushes for major reforms as Austria falls in global rankings

It is recommended that the current tax and levy rate be gradually reduced from 43.2 per cent to 40 per cent by 2030. Austria's issue isn't with revenue but with expenditure. Austria must improve its progress by clinging to outdated inheritance and wealth tax concepts. Most EU countries have moved beyond these ideas, focusing instead on growth, innovation, and performance. Austria needs an efficient government that empowers working individuals to achieve personal growth and success.

Lowering non-wage financial pressures

Austria has one of the highest taxation rates globally. Employers and employees in Austria pay approximately 46.8 per cent of gross wages in taxes, ranking the country fourth highest within the OECD. Specifically, employer contributions are 21.8 per cent, exceeding Germany's rate by over five percentage points. By significantly reducing non-wage costs—without compromising the welfare state—Austrians could retain more of their gross income as net income.

Embracing performance and personal responsibility

In Austria, there is a call to rediscover forgotten virtues like initiative and personal accountability. Moving beyond an overly comprehensive state approach, which can stifle initiative and risk-taking, is crucial. Embracing and celebrating a responsible economy and industry, rather than unfairly hindering it with unwarranted barriers, is essential. It's time to stand firm against unjust criticism of entrepreneurs.

Implementing Green Deal for long-term economic benefits

When implementing the Green Deal and advancing the green transformation, it's crucial to ensure that sustainable practices remain economically viable, socially compatible, and ecologically sound without undue bureaucratic burdens. The Green Deal should be reimagined and effectively executed as an inclusive, competitive industrial initiative, fostering genuine economic growth.

Calls for modernisation of unfair pension structures

The current pension system needs to be revised, significantly burdening future generations. By 2050, it will cost the budget a staggering one trillion euros unless further reforms are implemented. This enormous sum could otherwise be directed towards education, infrastructure, and fostering innovation. Urgently require consistent reform and innovative approaches to pension provision. Making concrete adjustments that align the effective retirement age with OECD standards in the years ahead is imperative.

Strategic vision for global trade

As a nation reliant on exports, Austria safeguards 1.2 million jobs through its 60 per cent export quota of domestic products. However, to enhance competitive conditions and bolster its export economy, Austria must shift from obstructing to actively shaping fair free trade agreements.

Simplifying EU regulations

Austria urgently needs relief from excessive bureaucratic demands within the European Union. It's crucial for Austria to firmly advocate for the EU Commission's proposed 25 per cent reduction in reporting obligations. The government must ensure that EU directives are implemented nationally without unnecessary embellishments.

Enhancing economic literacy in basic education

Economic education should be given greater prominence in primary education. It serves dual purposes: raising awareness about one's role in the economy and equipping individuals with the skills to navigate this system independently. Achieving this requires integrating practical experiences into the curriculum and providing focused training for educators to connect theory with the practical realities of business effectively.