Negative selection?

Zmuegg: “We have the worst political personnel”

(Bild: krone.tv)

Financial Ombudsman Team Managing Director Gerald Zmuegg criticizes the public discussion surrounding the KTM bankruptcy: "In my opinion, it's already heading in the direction of business bashing of the worst kind. The fact is that KTM grew in terms of sales once again in 2023. The fact is that the average salary per employee at KTM rose by 14,000 euros between 2020 and 2023. The fact is that the profit in 2023 was around 96 million euros."

For the financing expert, it is therefore clear that the responsibility for KTM's bankruptcy also lies with those who have been responsible for the economic policy of the last 20 years. The same applies to the management and employees: "And to make Pierer the only scapegoat now simply bothers me. Because it simply appeals to the basest instincts of entrepreneur bashing. That's simply not right. You have to accept top performers and entrepreneurs." Apart from KTM, small and medium-sized enterprises ('SMEs') are also struggling at the moment: "We have one of the stupidest energy policies in the whole of Europe. Apart from Germany, we're just driving a ghost train in terms of energy policy. And all other countries have a sensible energy policy."

Managing Director of the Financial Ombudsman Team Gerald Zmuegg

(Bild: krone.tv)

Austria we North Korea
But the general situation for the economy in this country is also depressing. Zmuegg: "We have nonsense like the GDPR or the Supply Chain Act, which nobody can implement. The whole world laughs at us for how bureaucratized we are. And companies will leave Austria because the location policy is a disaster. Let me put it bluntly: The only business location that is currently less attractive than Austria in terms of growth is North Korea, as an entrepreneur told me yesterday. And there is some truth in that. And I assume that it is not the entrepreneurs who have forgotten how to do business over the last 15 years. Because the negative selection in politics certainly has more of an impact here."

Economic illiterates
Does the term 'negative selection' refer to the people currently working in politics? "Yes, of course. We have the worst political personnel. You also have to say that with the economic illiterates who are discussing things here, there are a lot of blind people talking about color." The economy is currently experiencing a very difficult phase, and the wave of insolvencies has not been prevented, as Finance Minister Brunner has always said, but only postponed. However, entrepreneurs are generally fighters and are fighting back.

"The fact is: we are only seeing the beginning of the wave of insolvencies. That means we are now at the bottom and it is slowly building up. In 2025, we will experience a valley of tears like no other." However, the entrepreneurs themselves would assess the current situation more positively than it actually is. Zmuegg: "And that's what it will take. Because politics will not be able to solve the issues. No matter which government comes in."