RLB-OÖ boss Schaller:

“Will lead to deindustrialization in Europe”

RLB-OÖ General Manager Heinrich Schaller: "Supervisory authorities believe they have to tighten the screws more and more."

(Bild: RLB OÖ/Hermann Wakolbinger)

CEO Heinrich Schaller of Raiffeisenlandesbank Oberösterreich harshly criticizes politicians and supervisory authorities in Europe and also in Austria. Due to the excessive bureaucracy, the extremely high tax burden, the regulatory madness, but also the "Green Deal", Austria is "on the way down".

Many countries in Europe, including Austria, are currently in crisis. After a 0.7 percent drop in GDP last year, economic researchers do not expect any improvement this year either. The OeNB is forecasting a further decline in economic output of 0.7 percent this year.

Austria is lagging behind other euro countries. The reasons for this include significantly higher wage increases due to collective wage agreements and energy costs. In part, this also means that inflation in Austria is still at a higher level than in other EU countries.

In such an environment, it is all the more important that the right (political) measures are taken. The ECB's key interest rate cut is an important point in getting the economy moving again. However, if such a step is taken too early, it will drive up inflation again. "Falling interest rates are very, very important for the economy in 2025," emphasizes Schaller.

Weak consumption despite high wage settlements
The banker finds it incomprehensible that consumption is not doing well, as wage settlements in Austria are among the highest in Europe. Customers would remain cautious, even if they had more money in their wallets. However, consumption is an important factor in getting the economy back on track. "Politicians have a role to play here," emphasizes Schaller.

Green Deal hinders companies
Recently, politicians have also paid far too much attention to the Green Deal, which is hindering companies' growth. "However, no incentives have been put in place to manage the Green Deal sustainably," criticizes Schaller. This also means that European companies are no longer competitive internationally. Companies are increasingly considering investing abroad, such as in Asia or the USA, rather than in Austria. "This will lead to deindustrialization in Europe," fears Schaller.

Measures to counteract this are therefore urgently needed. Excessive regulations, for example, are detrimental to the economy. "The supervisory authorities believe they have to tighten the screws more and more. However, this is stifling the upturn," explains the banker.

Nobody needs the KIM regulation.

RLB-OÖ-General Heinrich Schaller

Bild: RLB/Foto Strobl

One thorn in the side of the former head of the Vienna Stock Exchange is the stricter lending guidelines ("KIM" regulation). "Nobody needs the KIM Regulation," Schaller sums it up. The market would regulate itself. Moreover, the banks are not the enemy of their own money. But instead of abolishing such regulations, there are already new considerations regarding higher deposit requirements for real estate financing.

Abolish capital gains tax on securities
In order for companies to grow, they need liquidity, for example via the capital market. For private individuals, for example, the taxation of investments is an obstacle to investing money in securities. For example, if you invest in a company in the form of shares, the state collects 27.5 percent capital gains tax when these shares are sold in the event of a profit. "In the case of long-term investments, capital gains should finally be tax-free," says Schaller. He proposes a retention period of three years, for example, and would like to see a simple regulation here. In the current government, the Greens have been blocking a time limit solution for years.

"Regulating ourselves to death"
As far as regulations are concerned, Schaller believes Europe and Austria are on the wrong path. "We are regulating ourselves to death". All areas are affected - and banks even more so. The amount of detail that the supervisory authorities want to know is getting out of hand and will not work in the long term. One example for companies is the sustainability report. Schaller: "For many, this is already more detailed and thicker than the annual report. Something can't be right!" A huge amount of resources would be lost here.

For many companies, the sustainability report is already more detailed and thicker than the annual report. Something can't be right!

RLB-OÖ-General Heinrich Schaller

Austria has one of the highest tax rates
As far as the tax burden is concerned, Austria is one of the (negative) leaders in Europe. The abolition of cold progression was "a milestone". Further efforts are needed in this direction. "We need to keep a closer eye on industrialization," says the bank manager. Anyone who achieves something should also be rewarded. "Why does someone pay more tax for overtime than normal?" Schaller questions the tax policy. He also calls for more incentives for people who want to continue working in retirement.