"Krone" commentary

Is it that difficult to lead a country?

Taking stock for the "Krone": Chief Economist Georg Wailand

(Bild: Krone KREATIV)

Everyone agrees: the way the parties negotiated for a coalition in our country was pathetic. It gave the impression that it must be very difficult to govern and lead a country properly.

But a look at neighboring Switzerland proves that this can be done with aplomb: of course there are problems and mistakes there too, but overall it is an impressive achievement how this country is run. Before you say it's not comparable, the conditions are completely different: we could do much of what the Swiss do better.

Inflation is much, much lower there than here. It is far below one percent, whereas here it has risen again to 3.3 percent. Unemployment in Switzerland remains at three percent, whereas here it has climbed back up to six percent.

But aren't incomes similarly high? Not at all, an average single earner in Switzerland (married, two children) has an annual income of 56,500 euros according to Eurostat, while an Austrian earns 33,876 euros. But surely taxes should also be compared?

With pleasure! According to the OECD, the tax and contribution ratio in Switzerland is 9.5 percent of gross earnings for the sole earner, compared to 38 percent in Austria.

You earn more and pay less tax. Apparently it is possible to run a small country well.