Image: VOLKER WEIHBOLD
“The bottom has not yet been reached,” said Doris Hummer, state chairwoman of the Economic Association, at the presentation of a survey by the Imas Institute. Accordingly, 21 percent of the 505 Upper Austrian entrepreneurs surveyed are worried about the next twelve months (survey took place in November), 30 percent are worried, 47 percent are confident. 54 percent expect the economic situation in Upper Austria to worsen, as Imas director Paul Eiselsberg explained. According to Hummer, these are worrying values because entrepreneurs are generally more optimistic than the general population.
After the recession in 2023, she only expects zero growth in Upper Austria in 2024 because things are going particularly badly in industry and construction. Economic researchers expect growth of 0.8 to 0.9 percent for Austria as a whole. Hummer said she was particularly worried about the first half of the year. “You can’t just ignore the agenda, you need measures for the economy and competitiveness, which has recently declined due to high costs.”
The entrepreneurs in the survey cited inflation, bureaucracy and a lack of labor as the biggest obstacles. When asked which economic policy measures would be “very important,” 79 percent said reducing non-wage labor costs, while 76 percent said reducing bureaucracy and combating the shortage of skilled workers.
That’s why the union will definitely be “hit on the hammer,” said Hummer. She referred to the statement by ÖGB President Wolfgang Katzian last week. He had said: “Well, the non-wage cost thing is really bothering me now.” Things that have been fought for by the unions and employees are being called into question. On Monday in Linz, Hummer spoke of “facts”: Austria has the third highest tax and contribution rate in the EU and is in fifth place in terms of the share of non-wage labor costs in labor costs.
Hummer is calling for the unemployment insurance contribution to be “immediately reduced” by half – from 5.9 to three percent. The contribution to the family burden equalization fund should be reduced from 3.7 to “at least” three percent. In order to stimulate the economy, Hummer advocated a new edition of the investment bonus, the craftsmen’s bonus, the expansion of the sales tax exemption for photovoltaic systems to all construction investments by private developers (up to 100,000 euros), the reintroduction of the special edition on housing creation, which was abolished in 2020, and the earmarking of housing subsidies. What is needed is “tax relief and incentive subsidies instead of repair subsidies when things are already on fire,” said Hummer.
Authority for the abolition of bureaucracy
The topic of bureaucracy is a long-running issue, but has become significantly more important in the Imas survey compared to the previous year. The Economic Association explains this by saying that in difficult economic times, unnecessary requirements are an additional burden; when business is going well, it is easier to bear.
Hummer called for a “bureaucracy abolition authority.” “An entire office should focus on how to make life easier for people and companies,” she said. There is already something similar in Germany.
The business association provided some examples of bureaucracy: With the 500,000 wage garnishments per year, “companies are misused as debt collection agencies for the judiciary.” Companies have to calculate and pay for this, which is time-consuming and the risk of liability in the event of errors is high. Hummer wants the courts to handle wage garnishments. The checking of workplaces for ergonomics and the low accounting limit of 35,000 euros are also criticized.
“Unusual” educational leave
This time the Imas Institute also asked about the topic of willingness to perform. 95 percent of entrepreneurs are of the opinion that “performance has to be worth it again”. 84 percent believe that the willingness to perform in society is decreasing.
Economic Association state manager Wolfgang Greil said a new “bad habit” was developing in educational leave. “Education and further training are important and right. But if, for example, a young, fully trained mechatronics apprentice prefers to take a year of educational leave and quit his job, then there is something wrong with the system.” The Economic Association wants to target young people, whose unemployment rose above average last year, with a targeted campaign.
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