The clock is ticking

Industry pushes for emergency package in the National Council

The National Council has been at a standstill since the election in September

(Bild: APA/GEORG HOCHMUTH)

After the failure of their dream government of FPÖ and ÖVP, the industry is now turning to parliament. It is demanding an immediate emergency package to save the ailing economy. "Every wasted day of standstill costs Austria over 15 million euros," warns the Federation of Austrian Industries.

The IV had recently attracted attention with fierce criticism of the ÖVP due to the failure of the blue-black government negotiations. Now they are turning their attention back to the other parties and are sending a long wish list to parliament via the "Krone" newspaper. In addition to budget restructuring, the central demands are relief for companies and the population.

"The alarm bells are ringing"
At minus 9.5 percent in one year, the manufacturing industry in Austria is shrinking more than in any other European country. After two failed coalition negotiations, a quick formation of a government is uncertain. "The alarm bells are ringing - industry in Austria is shrinking the most in the EU in one year, there is a threat of deficit proceedings by the EU Commission and unemployment figures are rising daily. The inability of the political players to date to form a reform coalition capable of taking action is further endangering the industrial and business location. We are thus jeopardizing prosperity and security for ourselves and future generations," says IV Secretary General Christoph Neumayer.

IV Secretary General Christoph Neumayer is alarmed.

(Bild: APA/HANS KLAUS TECHT)

The recession is deepening and deindustrialization is becoming increasingly noticeable in rising unemployment figures. In addition, the geopolitical pressure is growing with new announcements from the US President every day. Both factors are putting this year's already extremely low growth at further risk - Austria is heading for another year of recession, warns the IV. "The challenges are urgent and cannot tolerate any further political standstill."

Implementing existing agreements in the National Council
Despite the differences between the parties, a fundamental agreement on central economic and location policy reform measures has been reached in the negotiations to date. These points of consensus must now serve as a basis for initiating the urgently needed reform steps in the National Council, demands the IV. In fact, parliament has been at a standstill for months due to the lack of a government. Without the government statement by interim Chancellor Alexander Schallenberg, the January session would have been over in ten minutes.

The wish list is long
The industry is calling on all parties represented in parliament to put aside the differences of recent weeks and months, find majorities and take on the responsibility given to them by the voters. First of all, budget consolidation should be ensured and secondly, relief measures should be introduced. The industry's wish list is long, but the priority is to reduce ancillary wage costs towards the German level (five percentage points), a noticeable reduction in bureaucracy and a sustainable reduction in energy costs, as Neumayer emphasizes.

The economy needs positive signals
There are also calls for tax exemption for overtime, the promotion of full-time work by smoothing the transition in the income tax rate between 30 and 40 percent, preferential taxation for working in old age, a reduction in corporation tax to the EU average and investment in research.

"In this phase of ongoing uncertainty, it is important to provide an urgently needed positive impetus in order to show a joint willingness to reform and the power to implement. After more than five months, ongoing coalition negotiations must not be an excuse for political deadlock. We have a parliament that is capable of taking action and can pass the necessary resolutions quickly," said Neumayer.