A Dearth of Reforms in Austria

Over the past decade, the Austrian economy grew at a slower rate than in the 1980s and 1990s, but growth was still higher than in Western Europe and Germany. Moreover, it handled the financial crisis better than most of the other European countries. Nevertheless, the challenges posed by changes in the economic framework are greater in Austria, i.a., because Austria is now in the top league in terms of income while its technology and education system have not yet adequately responded to these changes. The European project is threatened by the high sovereign debt in some southern countries (as well as Belgium and France), and the EU-2020 strategy for higher as well as more inclusive and ecological growth is being neglected. The paper lists 15 key items in need of reform – mostly in the economic sector – which would allow Austria's economy to continue to be internationally competitive while increasing its standard of living. Implementing these reforms requires political courage and stringent pruning of expenditures during the upcoming long period of budget consolidation.