Advice to the government

Wifo boss: these taxes need to be increased

(Bild: APA/ALEX HALADA)

Wifo CEO Gabriel Felbermayr emphasizes the need for swift and "unpopular measures" that the next government must take so that "Austria can be put back on a growth path".

"What we need is a clear reform agenda." In view of the circumstances of recent years, it is clear that the trouble spots are costing prosperity. "We need to tighten our belts a little," said Felbermayr on Sunday's ORF "Pressestunde".

Federal President Alexander Van der Bellen has not yet given any party the mandate to form a government. Therefore, there are no official coalition negotiations yet. However, Wifo head Gabriel Felbermayr already has a few tips for this.

(Bild: APA/Florian Wieser)

Felbermayr would also tweak the taxes: "Nobody likes a tax increase." On the other hand, you have to bear in mind that the mineral oil tax, for example, has not been raised since 2011, but inflation has risen by 40 percent in the same period. In real terms, it has therefore fallen every year.

Increasing the fuel tax or abolishing the diesel privilege would certainly be an extremely unpopular measure.

(Bild: stock.adobe.com/mikemobil2014 - stock.adobe.com)

Tips for the SPÖ and ÖVP in the event of negotiations
A "cautious step" could also be taken with the diesel privilege. An increase in property tax rates could be interesting for any coalition negotiations between the ÖVP and SPÖ: "Something could be done about that." As the property tax is a wealth tax, one side could claim to have achieved something here and the other that it had prevented a real wealth tax. Felbermayr also thinks little of the latter.

No preferences, but three-party coalition "complex"
The head of Wifo also believes that raising the retirement age to 67 should be on the reform agenda. Strengthening the second and third pillars, i.e. occupational and private pensions, would also be necessary. Felbermayr recommends a moderate approach to the civil servant pay round.

The economic expert did not give any details regarding a color preference for the next coalition. However, he emphasized that a coalition of three parties is "complex", as can be seen in Germany.