Economy in Burgenland: Wirth warns of increasing pressure on companies

Economy in Burgenland: Wirth warns of increasing pressure on companies

The current economic situation in Burgenland was the focus of the economic parliament that met in Eisenstadt on Wednesday. Despite the overall solid state of the economy, the challenges for local companies are still noticeable. A clear wake-up call came from Andreas Wirth, President of the Burgenland Chamber of Commerce, who described the situation as “five to twelve”.

In his first year in office, Wirth visited numerous entrepreneurs to gain an accurate picture of the situation. In his keynote speech, he reported that the economy was generally performing well, but was suffering from ongoing pressure. Wirth noted: "Business owners are under pressure due to factors for which they are not responsible. This pressure also affects employees." This highlights the burden that rests on the shoulders of companies.

Approaching urgent problems

One of the biggest concerns for entrepreneurs is the high tax burden, which is damaging the competitive situation in Austria. Wirth pointed out that non-wage labor costs in Austria are around nine times higher than in Switzerland, which severely affects the competitiveness of domestic companies. He warns: “If the new government does not succeed in significantly flattening the tax curve for the self-employed and dependent, the situation will become dramatic in the medium term.” 

Special considerations also apply to the construction industry, which is particularly suffering from the current economic situation. Wirth urgently calls for transparent funding guidelines for housing construction in order to give the sector the necessary impetus. He stated: “The Burgenland construction industry needs this impulse in order to be able to continue working successfully.” This requirement is essential for the future of housing construction.

Another pressing issue is the increasing shortage of personnel, especially among younger employees. Of the 8,000 unemployed people in Burgenland, around a fifth are under 25 years old. Wirth sees a lack of performance thinking in the younger generation and emphasizes the need to change attitudes to work in order to meet the challenges of the labor market.

Wirth also addresses the so-called “tavern death”, which points to the challenges facing the catering industry. To combat this, the industry needs a comprehensive support package to ensure its viability.

Andreas Wirth's warnings show that Burgenland entrepreneurs are facing serious challenges. The ongoing political and economic conditions require speed and determination from decision-makers in order to successfully shape future developments. The Economic Parliament has made it clear that urgent measures are needed to sustainably secure the economy in Burgenland and proactively address challenges. The situation remains tense and developments regarding the new government's economic measures could determine the success of companies in Burgenland.