Austria on the decline

IV President Knill only gives location a pass

Georg Knill calls for reforms

(Bild: APA/GEORG HOCHMUTH)

Alarm bells are ringing in the industry. IV President Georg Knill gives the Austrian location only an "A" and calls for reforms. Once again, he calls for a reduction in non-wage labor costs. "We are not competitive", warns Knill in the ORF "Pressestunde" on Sunday.

Knill calls for a labor market reform to reduce non-wage labor costs. Among other things, the industry wants to transfer employers' contributions to the FLAF (Family Burden Equalization Fund), which is used to finance family allowances, entirely to the budget. Knill would also like to see changes and new models for wage negotiations, which are to be developed in cooperation with the trade union.

(Bild: Krone KREATIV)

It is a myth to believe that we can maintain this welfare state with less work.

Georg Knill

Austrians need to work more again
Part-time work is a thorn in the side of the economy. "We have 25 percent fewer annual working hours than Americans and we retire too early." Incentives need to be created so that people switch from part-time to full-time, work longer and are also prepared to work overtime, says Knill. "It's a myth to believe that we can maintain this welfare state with less work. At 30 percent, we are a part-time country, we are a record holder in Europe." 800,000 people voluntarily work part-time without care responsibilities, but use the welfare state 100 percent, Knill points out. "Everyone can live however they want, but with the consequences. Unfortunately, attitudes towards work have changed." 

Major concerns about education
When it comes to migration and the shortage of skilled workers, the industrialist warns against a mix-up. The industry wants qualified immigration of skilled workers, but not illegal mass migration, with which there are increasing problems throughout Europe. Knill is very concerned about the lack of education among young people. Many children do not speak the local language after school. "We can't send young people into unemployment after school. Where are we, please? We can't afford that!". We need all-day schools and interlinked forms of teaching.

SPÖ plan

Offensive measures in million euros

Total investments (including childcare, health, transformation fund) 7,470
VAT reduction on basic foodstuffs (temporary) 700 Tax reduction on wages and income tax 4,000 Total package of offensive measures 12,170

Counter-financing
Total savings (including staff, own PR, subsidies, inflation reduction) 3,500
Fair taxes (millionaires, reallocations; reversal of Köst reduction) 7,750
Economic effects (direct jobs, increase in purchasing power, consumption effects, transformer investments) 2,500
Total package counter-financing 13,750 Buffer/consolidation contribution of the package 1,580

Harsh criticism of Babler's economic program
Knill was almost stunned by the economic program of SPÖ leader Andreas Babler. This was directed against the market economy and entrepreneurship. "I really have to say: social democracy has never been as anti-business as it is under this leader." New taxes are an absolute no-go for Knill. "We don't have a revenue problem, we have a spending problem." This can also be seen in the budget and the rising national debt. "A pension system that requires an additional 16 billion from the budget is not sustainable. Reforms are needed here, not new taxes. These debates are poison for the location."