Austria General Election: Economic Proposals by Main Political Parties

Introduction

Austria is gearing up for a general election, and the next government will have to navigate a challenging economic landscape. With the economy facing a potential second year of contraction and inflation surpassing the EU average, it’s crucial to understand the economic proposals put forth by the main political parties. Let’s delve into what each party is offering on the economic front.

Freedom Party – FPO

The far-right FPO, leading in opinion polls, advocates for deregulation and lower taxes, with proposals including:

• Cutting corporation tax on small businesses from 23% to 10%
• Scrapping a tax on carbon emissions introduced in 2022
• Implementing price controls during severe inflation on essentials like food, rent, and energy
• Expanding renewable energy while acknowledging the ongoing need for Russian gas
• Increasing annual pension increments, especially for small and minimum state pensions
  

  Austrian People’s Party – OVP
  

  Following closely behind the FPO, the ruling conservatives aim for lower taxes and lighter regulation, with measures such as:

• Progressive cuts to employment taxes
• Ensuring corporation tax is at least 0.5% lower than the EU average
• Gradually reducing tax revenue as a percentage of GDP
• Introducing automatic expiry dates for new regulations
• Implementing a two-for-one regulation removal policy
• Shifting to self-sufficient energy from renewables
  

  Social Democrats – SPO
  

  Polling at around 20% support, the leftist SPO proposes a tax burden shift from income to assets, allowing for tax cuts for the majority. Their suggestions include:

• Reinstating corporation tax to 25%
• Imposing special levies on energy companies and banks benefiting from price hikes
• Transforming state holding company OBAG into a renewable energy promotion vehicle
• Decreasing reliance on Russian gas swiftly
• Piloting a four-day workweek with input from companies and unions
  

  New Austria – NEOS
  

  The liberal NEOS party, polling at 10%, advocates for:

• Lowering employment taxes to increase take-home pay
• Eliminating capital gains tax on long-term stock investments
• Enhancing apprenticeships and vocational education
• Transitioning away from fossil fuels and Russian gas
• Establishing streamlined approval processes for green infrastructure projects
• Adjusting retirement age based on life expectancy
  

  The Greens
  

  In coalition with the OVP since 2020 and polling at 8%, The Greens propose:

• Reducing subsidies for environmentally harmful businesses to fund green infrastructure
• Expanding carbon emission taxes and climate bonuses
• Removing licensing requirements for certain professions
• Committing to 100% renewable energy by 2030
• Gradually reducing work week to 35 hours post addressing skilled labor shortages

  In conclusion, the economic proposals offered by Austria’s main political parties present distinct approaches to tackling the country’s economic challenges. Each party’s vision reflects its priorities and values, offering voters a range of options to consider when casting their ballots in the upcoming election.