Banking in Austria: Is the big cost trap now?

Banking in Austria: Is the big cost trap now?

Vienna, Österreich - The bank tax could celebrate a return in Austria: ÖVP state captain Markus Wallner has signaled that he is open to discussions about the introduction of such a tax. This idea, which was discussed after the financial crisis in 2008 and abolished in 2016, could now be back on the agenda to generate additional income for the state. Wallner said: "I always looked at it rather relaxed because I always thought that banks can also make a contribution in the situation", as orf . The considerations aim to impose a levy on their profits or balance sheets in order to be able to cushion future financial crises better.

As part of the coalition negotiations between the ÖVP, SPÖ and NEOS, the banking could be a central point of dispute. Wallner emphasized that the design was crucial and warned that the costs should not be passed on to bank customers. He made it clear that these contributions should flow into areas such as residential construction or energy finance. However, the proposal has caused mixed reactions: While the SPÖ pleads for a fair participation of the banks in the company, it warns of higher costs for the citizens. The FPÖ sees the levy as a burden on the financial sector and possible negative effects on the economy, while the Greens demand a precise design to avoid social injustices, such as Vol.at

The debate about the bank tax could be crucial for the composition of the future government, since it could quickly become a sticking point in the current coalition negotiations between the parties. Wallner made it clear that the consent to the bank levy was closely linked to the austerity measures already registered after Brussels. It remains to be seen whether and how these suggestions will be treated in the cabinet, but it is clear that the political discussions will increase in intensity in the coming months.