"Economy brake"

Salzburg Chamber dispute over bank levy

Should banks pay a higher levy? This is not only being discussed by federal politicians, but also by Salzburg's Chamber of Labor and Chamber of Commerce.

(Bild: P. Huber)

The Salzburg Chamber of Labor is calling for a higher bank levy to cover rising social spending. Raiffeisen Director General Heinz Konrad opposes this and warns of a "brake on the economy".

It is one of the sticking points in the coalition negotiations in the federal government: the bank levy. The FPÖ and ÖVP are negotiating whether banks should be obliged to pay a higher contribution. According to information from "Krone", cheaper loans for house builders or investments in start-ups are being discussed. 

According to the President of the Salzburg Chamber of Labor, Peter Eder, Austria's banks should give around one billion euros a year. "This could be used to build 4,000 urgently needed subsidized rental apartments across Austria," argues the SPÖ official.

Banks have so far paid a levy of 5.2 billion euros
The banking and insurance division of the Salzburg Chamber of Commerce is outraged and opposes this. Austria's banks have paid a bank levy of 5.2 billion euros since 2011 - 152 million euros in 2023. In addition, 4.6 billion euros have been paid into resolution and deposit protection funds.

"Portraying the banks as winners of the crisis who can easily afford a new levy is pure populism and arbitrariness, especially as the banks play a key role in stabilizing the economy," says Raiffeisen CEO Heinz Konrad angrily. All funds granted by the state have been repaid by the banks. 

Bank spokesman fears negative consequences for the business location
Konrad also warns of devastating negative effects for the business location. "Raising the tax would slow down the strengthening of the banks' equity capital and thus significantly reduce their ability to grant loans," says Konrad. As a result, it would become more difficult for banks to provide the economy with financing - especially for domestic companies and private households.