Mahrer: “This is lived reality”

Politicians in Austria and at the European level must now take strong countermeasures because Europe is already “on the decline” economically, said Mahrer on Tuesday at a press conference in Vienna. Due to high labor and energy costs and a high tax burden, Austria “prices itself out of the market”.

The Chamber of Commerce underlines how “extremely alarming” the situation already is with a survey carried out by the consulting firm Deloitte on behalf of the interest group. Accordingly, 90 percent of the companies surveyed said that the attractiveness of Austria as a location was decreasing. Almost three quarters of companies see a real danger of deindustrialization. More than four out of ten companies have relocated production abroad in the past three years. “Relocation of production is a living reality,” says Mahrer.

In Germany, two thirds of companies would relocate their production, so Austria is in an even better position comparatively. “But that shouldn’t calm us down, it’s a train that’s picking up speed.” Many parts of the value chain in Austria would depend on the German one. Cost-intensive areas with high added value and well-paid jobs are particularly affected.

“Austria is pricing itself out of the market”

The main causes are high labor costs, the issue of energy security and energy costs, bureaucracy and regulation, tax burdens and the availability of qualified workers, Mahrer said at a press conference on Tuesday and also referred to high inflation and high wage agreements. “Austria is pricing itself out of the market.”

In order to slow down this development, the “inauthentic” additional wage costs should be reduced, demands Mahrer. These are costs that have nothing to do with the company but are still passed on to them, such as the family burden equalization fund, for which the state should pay in full. Mahrer would also like to see more “incentive orientation in the tax system”, for example significantly more overtime should be exempt from tax. People who want to work past the standard retirement age should only have to pay for accident insurance because they have health insurance through their pension anyway. “You should pay them the money gross for net.”

There is a potential for tens of thousands of jobs, says Mahrer. Now is the right time to act, he said, referring to the EU and National Council elections. “If you have everything in your cupboard,” these should be the topics in the new government program.