Austria's economy in the crisis: urgent need for action required!

Austria faces decisive challenges! The President of the Fiscal Council and Productivity Council, Christoph Badelt, recently warned of the growing problems of the domestic economy in a conversation on the current productivity report. "The concerns are increasing," said Badelt, and emphasized the urgency of a new government capable of acting. The productivity council, founded in 2022, emphasizes that Austria's competitiveness is significantly impaired, especially due to failures in digitization and energy policy. In its report published in November 2024, the Council of the Future Government gives no less than twelve recommendations, including a comprehensive offensive for digital technologies and a faster expansion of renewable energies, such as Sn.at reported.

The numbers speak a clear language: While labor productivity grew by more than 4 percent a year in the 1980s, it stagnated to less than 0.5 percent in 2023! Badelt warns: "Austria is on the scabbard." Rising energy and labor costs strain competitiveness, and an acute shortage of workers inhibits growth. Despite high income, not all sections of the population benefit alike, and the absolute poverty rate has recently increased. An increased use of digital solutions could significantly increase productivity, but in international comparison, Austria is at best in midfield with regard to the decisive aspects such as IT specialists and infrastructure.

urgent requests for action

The Productivity Council calls for a realignment of economic policy in Austria. The connection between natural gas and electricity prices must be checked in order to strengthen competitiveness, and the previous investments in environmental and digitization are not sufficient. The recommendations, which are also directly addressed to the parliament, also include a coupling of the retirement age to life expectancy and better labor market integration of women and the elderly. Badelt emphasizes that without clear goals and quality standards in early childhood education, the challenge of creating future workers for the social and labor market will be difficult to manage, so vienna.at .