For the first time in a while, current economic prognoses are mentioning economic growth again for 2010. What is your assessment of the present economic situation in Austria?
The recession was successfully halted; in part, thanks to the dedicated actions by the government and the social partners. We therefore have a better grip on the crisis than the average EU country or some important trade partners. But even though there is an upwards trend, it is too early to send an all-clear signal. 2010 will be a deciding year: We cannot rule out new issues. In addition, unemployment rates will continue to rise and businesses will still have to fight for every contract. What is even more troublesome is that some have already started the next speculative cycle on Wall Street. This is why we need an aggressive regulation of the international financial market.
In order to cope with the economic crisis in the best way possible, stimulus packages were created and support programmes were initiated. Are the current measures sufficient in your opinion?
The stimulus packages were important and have significantly contributed to bringing the downswing to an end. Now, we need to set the course for a long-term economic revival. In light of the shortage of funds, we need measures that will quickly show effects on the labour market, stimulate demand, but at the same time do not overstretch the budget. The economic chamber has developed a growth package under these premises. Top priorities are a tax bonus for craftsman services and increased funds for thermal upgrades. This does not only spur private demand, thereby securing jobs and contracts, but also finances itself. Furthermore, in addition to the national measures to alleviate the pro-cyclical effects of Basel II, there needs to be further improvement with regard to business financing, for example in the area of subsidies.
Austria is still in demand as a business location for internationally operating companies that are primarily active in the Southern and South-Eastern European countries. What makes Austria so attractive as a business location?
Despite all the issues the crisis has caused, especially in Eastern Europe, we have not lost our role as a bridgehead to this region, and have even strengthened it. True friends only show when the going gets tough. We have proven that we are not just looking to make a quick buck in Eastern Europe, but rather want a long-lasting partnership that benefits everybody: For instance, Austria, with finance minister Josef Pröll at the helm, was able to get an aid package for Eastern Europe accepted within the EU. In addition, Austria’s flagship location factors (a business-friendly climate, reliable framework conditions and stability of the law) have not changed because of the crisis. And I dare to say that the “soft factors”, such as our well-trained workforce and social peace (thanks to a strong social partnership), have become even more important.
Which measures or strategies are required to keep companies in Austria and convince further businesses of the qualities of the location?
It is clear that, in a globalized world, Austria will never win a price competition. Therefore, we need to be a step ahead in the race for the best thinkers and talents. We need to move even stronger towards research and development, innovation and qualification. This requires targeted funding, but also reforms; in the education sector, for example.
What activities does the Austrian Federal Economic Chamber set outside the borders in order to bring businesses to Austria?
The over 100 offices that our foreign trade organization operates worldwide do not only act as a door opener for Austrian companies abroad, they are also promoters of Austria as a business location and the first point of contact for foreign businesses. With advantageaustria.org, the economic chamber operates an international platform for the Austrian economy abroad. In 196 country-specific pages, targeted information about Austria as a business location and information about exports to Austria is being presented to a worldwide audience in 28 languages. And with our internationalization initiative, we support Austrian companies in their market presence abroad. The goal: We want to take a bigger slice from the smaller foreign trade pie.
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