IV chief Knill calls SPÖ “anti-business”

The next government must put the economy back at the center. Little is known regarding the FPÖ’s economic program. The SPÖ “actually has a program once morest the market economy,” said Knill. She therefore saw the IV as being “cold-hearted towards working people.”

  • About Andreas Babler’s 24-point package:

The head of the Federation of Austrian Industries was very critical of the SPÖ and its leader Andreas Babler. The Social Democrats “are calling for renationalization. In reality, they have a program once morest the market economy, entrepreneurship and personal responsibility. The Social Democratic Party has never been as anti-business as it was under chairman Babler,” the industrialist criticized.

SPÖ Federal Director Klaus Seltenheim responded in a press release with sharp criticism of Knill’s statements. “The Federation of Austrian Industries is the lobby of large corporations and the super-rich, which is launching rolling attacks once morest employees. While large corporations and the super-rich are rewarded with tax breaks, the ÖVP and IV are massively increasing the pressure on working people.” Demands for an increase in working hours and savings in the pension system, as reiterated by Knill on Sunday, have been rejected. It cannot be that employees “have to pay for the irresponsible budget policy of the current government.” The SPÖ, with Babler at its head, will not allow savings to be made on pensions, health and education, said Selteznheim.

Knill was more reserved regarding the FPÖ. “We will analyze how the Freedom Party is committed to the industrial location,” said Knill, should the Freedom Party come into government following the National Council elections. The common denominator between the Freedom Party and the IV seems to be the constant rejection of new taxes. A factor that might tend to separate them is that industry is strongly pro-EU, does not criticize or understand the sanctions once morest Russia, and is also in favor of foreigners moving in if they are qualified for the labor market.

Knill emphasised that they are in contact with all parties represented in parliament and their most important proponents. This also applies to FPÖ leader Herbert Kickl, even though he said in the press conference that he had turned down an invitation to an IV event.

Knill was noticeably cautious in his comments on the Freedom Party. When asked, he simply stressed that it was of the utmost importance for the IV how parties positioned themselves towards free trade and the EU. And that this would also be “looked at and commented on” in the case of the FPÖ following the election.

  • Election campaign topic “Internal combustion engines”:

Knill gave the still governing coalition of the ÖVP and the Greens a satisfactory rating. The junior green partner had “shown his muscles in the game of power.” The threesome existed “because good, correct measures were taken to get through the crises,” said the IV chief, referring to the end of bracket creep and the reduction in corporate tax.

  • Abolition of bracket creep:

Knill gave the location only a passing grade for several reasons – primarily a “lack of competitiveness and high cost pressure”. Unit labor costs in Austria have become far too high and are higher than in Germany. It has gotten to the point where international customers can no longer afford products “Made in Austria”.

  • Bad marks for economic policy despite ÖVP government:

The IV’s “red line” towards a new government is new taxes. There should be no such taxes. Savings must be made on the expenditure side, and in the pension and health sectors alone there is “efficiency potential of ten billion euros”.

  • Budget: Unpopular reforms necessary:

Industry is in recession for the second year. Knill does not expect a small amount of growth until next year at the earliest. Another factor is that the volume of work in Austria has increased much less than employment in recent years. In addition, investment activity is muted or non-existent – often, if there is investment, it is abroad “because the general conditions in Austria are correspondingly poor.”

  • Discussion regarding wealth taxes “poison for the location”:

No taxes should be increased and no wealth or inheritance taxes should be introduced. The state budget must be urgently repaired and savings made on pensions, said Knill, citing well-known IV demands.

For example, non-wage labor costs would have to be reduced. The 3.7 percent that companies alone paid into the family burden equalization fund should be paid by everyone – “into the general budget.” This includes family benefits, school books, free travel for students, and maternity leave payments.

  • Problems in the education system:

Reforms are also needed in the labor market, Knill said, targeting unemployment insurance, for example, which at 2.4 percent is twice as high as in Germany.

  • Separation between “skilled immigration” and “illegal migration”

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