Nehammer Unveils Comprehensive Growth Plan to Bolster Austrian Economy
Focus on Labor Shortage, Tax Reform, and Reducing Bureaucracy to Enhance Competitiveness
April 24th, 2024
Austrian Chancellor Karl Nehammer, in collaboration with the Austrian Federal Economic Chamber (WKO) and the Federation of Austrian Industries (IV), unveiled an ambitious growth plan today aimed at strengthening Austria's economic landscape. The plan identifies several key areas of action essential for fostering growth, prosperity, and a robust labor market.
A primary focus of the plan is to address Austria's labor shortage by increasing the number of qualified workers. "We need more skilled labor to overcome the current shortage and ensure a thriving job market," Nehammer emphasized.
Reforming the tax system to reward performance is another cornerstone of the plan. Nehammer proposed incentives such as tax-free overtime and a full-time work bonus. "Reforming our tax system will make hard work more rewarding," he stated, highlighting the need for changes that encourage greater productivity.
The plan also seeks to enhance the incentive to work by reducing both the tax rate and non-wage labor costs. "We aim to make working more attractive by lowering the tax burden and ancillary wage costs," Nehammer explained, underscoring the importance of making employment more financially appealing.
A successful economic location, according to Nehammer, requires minimal regulation and reduced bureaucracy. The plan includes measures to streamline administrative processes and improve infrastructure. "Less regulation, cutting down on red tape, and providing the best possible infrastructure are crucial for a thriving economy," he said. This includes the further expansion of childcare services, a project already underway.
Nehammer firmly opposed any new government interventions that he described as performance- and location-hostile, particularly new property taxes. "We reject any state interventions that hinder performance or our economic standing," he asserted.
The overarching goal of Nehammer's plan is to create a future-proof Austria where performance and qualification are duly rewarded. "Our efforts are directed towards ensuring not just social justice but also performance justice for both employees and companies," he concluded, emphasizing a balanced approach to economic and social policy.
The comprehensive growth plan reflects a concerted effort to enhance Austria's economic competitiveness while fostering an environment where both businesses and workers can thrive.
