PwC boss Krickl:

“Austria is on the brink of an economic upturn”

The recession is still ongoing, but the Austrian economy should pick up again towards the end of the year.

(Bild: stock.adobe.com)

Finally some good news for the Austrian economy: Rudolf Krickl, head of the tax consultancy and auditing firm PwC in Vienna, sees light at the end of the tunnel. But before things really get going, we still have to fight our way through a third year of recession. However, Krickl is certain: "Austria is on the verge of an economic upturn!" 

The reasons why the domestic economy could soon get going again: the stimulus provided by the government program, Germany's economic engine thanks to the 500 billion euro infrastructure package and new EU initiatives to reduce bureaucracy.

Third year of recession - but then things will pick up!
"We won't be able to save ourselves from a third year of recession. It's already March and the economic data for this year is not good," says Krickl. But he remains optimistic: "Things should pick up again towards the end of the year. If the German economic engine starts up again, that will be good for the whole of Europe. Austria will then also be on the verge of an economic upturn."

Government program: these are the game changers
Krickl sees promising approaches in the government program of the new three-party coalition of ÖVP, SPÖ and NEOS: "I think it's positive that performance should be made more worthwhile again by reducing non-wage labor costs. That is a good signal because we are one of the top tax countries."

Rudolf Krickl, head of the tax consultancy and auditing firm PwC in Vienna: "What we are seeing is that we need more working hours in Austria again!"

(Bild: PwC Österreich)

In addition, the planned flat tax of 25 percent for pensioners who want to continue working could alleviate the shortage of skilled workers. "This will help to keep qualified staff in the workforce. What we are seeing is that we need more working hours overall in Austria again."

Research hub Austria: opportunity for top scientists
Austria could also establish itself as a hotspot for research and development. Krickl is in favor of the research premium: "The statement in the government's program to increase the research quota to over four percent of gross domestic product is a strong signal."

Many international corporations already have their research centers here - and that creates jobs and added value. The US government's new hostility towards science is also a real opportunity for Austria to bring scientists back.

Insurers as an economic turbo?
According to Krickl, domestic insurance companies could also provide an economic boost: "The large insurers manage over 100 billion euros, which they mainly invest abroad due to regulation. If we could get them to invest more in Austria with guarantees and guarantees from the state, that would give the economy a real boost!"

Reducing bureaucracy: Europe must finally deliver
When it comes to bureaucracy, Krickl is clear: "It is always said that the USA has the innovation, Asia has the production and Europe has the regulation. This has many negative effects on the European economy."

The EU must therefore actually implement its plans to reduce bureaucracy. "The regulations for sustainability reporting and the fight against the climate crisis make sense, but are sometimes excessive." On the other hand, it is important to invest in the right future technologies and make life easier for companies.

Promoting innovation - but how?
Krickl emphasizes that Austria needs more innovation - and this can only be achieved with significantly faster approval procedures and simpler company start-ups. "There are also positive signals in the government program in this regard."

Now is the time to step on the gas!
The most important thing now is to move quickly and implement the government's program. Krickl: "If more than half of the plans succeed, that will be very good and help the economy." 2026 could finally be the year of the big upswing!