"Worlds better"

Why Kocher’s comparison with the Germans is wrong

In an interview with Bild, Labor Minister Martin Kocher outlined the areas in which Austria is better off than Germany - but withheld a few details.

(Bild: Bild.tv)

Employment Minister Martin Kocher told the German newspaper "Bild" that Austria is in a much better position than its big neighbor. "Austrians outperform the traffic lights when it comes to pensions and energy," was the headline in the paper on Thursday. Why this claim does not stand up to closer scrutiny.

"The days when little Austria looked on with admiration at the economic giant Germany are long gone," writes Bild, citing the pension system, which is said to be "worlds better", and the energy supply as examples. Labor and Economics Minister Kocher is pleased: "We have a comparatively flexible pension system that works well." 

Another point that Kocher emphasized positively was the longer-term prospects for displaced persons from Ukraine. In comparison to Germany, this was created in Austria as part of the Red-White-Red Card Plus. "This gives the refugees stable prospects and companies no longer have to worry that the residence status of their employees will suddenly change," said Minister Kocher in the interview. According to Bild, the employment rate of displaced Ukrainians is already higher in Austria than in Germany. 

Earlier retirement and more money
The newspaper points out that Austrian men retire on average at the age of 62.1 and receive an average of 1856.08 euros per year, while women retire at 60 and receive an average of 1310.74 euros. In contrast, the average German pension is 1332 euros for men and 1118 euros for women - with only twelve payments per year.

In an interview with "Bild", Labor Minister Martin Kocher explained in which areas Austria is better off than Germany - but withheld some details.

(Bild: Bild.tv)

In the previous year, men and women who retired from working life with the regular old-age pension worked on average until 65.3 (women 65.4) years, according to "Bild". "Austrians work up to five years less than we do - and still get more out of it," is the conclusion.

State subsidy increases every year
However, the report fails to mention that the Austrian system is only kept alive with a lot of taxpayers' money. The public sector has to contribute 14 billion (!) euros this year. PVA Director General Winfrid Pinggera repeatedly warns that the system will eventually become too expensive and calls for measures to bring the actual retirement age closer to the statutory age.

NEOS shake their heads
NEOS member of parliament Gerald Loacker, who has been criticizing the domestic system for years, is surprised by Kocher's appearance: "Every international organization is calling on Austria to reform its pension system: OECD, IMF and the EU Commission. The minister must also have missed the latest report by the Court of Auditors and ignored the admonishing words of Fiscal Council head Christoph Badelt."

NEOS man Gerald Loacker

(Bild: SEPA.Media | Michael Indra)

Only on Wednesday, Fiscal Council President Badelt painted a bleak picture of Austria's budget and criticized the exploding pension costs, among other things. For 2024, the Fiscal Council expects a deficit of 3.4 percent of GDP, and it will not fall below the Maastricht limit of three percent until 2028.

"Next government will not be able to avoid austerity package"
Badelt identifies a lack of strategy on the part of Finance Minister Magnus Brunner (ÖVP). "I was very surprised that something like this was reported to Brussels," said the President of the Fiscal Council. The next government will start with an austerity package and will not be able to avoid tax increases, he said.

Energy sector, of all things, as a positive example
The second example of Austria's alleged role model effect is also questionable. The report praises the comparatively low electricity prices, but makes no mention of the fact that no other country in Europe is so dependent on Russian gas and, after almost two and a half years of war, still purchases almost 100 percent Russian gas.

Kocher: "The comparatively high proportion of renewable energies in Austrian electricity production is certainly a strategic advantage over Germany."