Truth is reasonable

“Austria is not competitive on the global market”

(Bild: krone.tv)

Domestic industry is in recession for the third year, says Georg Knill, President of the Federation of Austrian Industries. We have been experiencing a loss of prosperity since 2019. The government must now vehemently implement measures to save Austria as an industrial location. "I believe the truth is reasonable. The citizens of this country are much further along than some political parties would like to admit."

Deindustrialization is already taking place, warns the President of the Federation of Austrian Industry in the krone.tv live talk. "Insolvency figures are rising, companies are having to cut staff and investments are not being made in this location. This is fatal for our country." Domestic industry and production account for a quarter of total value creation and a quarter of all employees in this country. According to the report, there is a direct correlation between industry, employment status, prosperity and the country's welfare state.

(Bild: krone.tv)

Austria is no longer competitive on the global market. The reason: we are simply too expensive. "Unit labor costs in Austria have risen by over 30 percent. In Germany, these costs have only risen by 16 percent in comparison. This means that we have a double increase in unit labor costs compared to our most important trading partner."

"Important issues are not being discussed"
The government must act as quickly as possible: "Reform measures must now be implemented exclusively on the expenditure side." With a tax and contribution ratio of around 44%, Austria has the third-highest tax ratio in the whole of Europe. "Even more taxes, even more burdens for citizens and companies is not sustainable. On the expenditure side, there is a great deal of potential, for example in pensions. However: "Consciously or unconsciously, this hot topic is not even being discussed in these government negotiations."

The fear of losing votes
"We expect reforms that are necessary. We all feel the same way. If my budget, my own budget, is not in order, then I have to put it in order. I can't always look afterwards to see where I can get new revenue. No, I have to start looking at the expenditure side, to save money, to see how I can use my resources efficiently." The tasks sound simple, but they seem difficult for the political parties to implement because they believe they could lose votes as a result.