Factbox-Austrian political parties’ plans for the economy By Reuters

VIENNA (Reuters) – Austria holds a general election on Sunday, with the next government facing an economy set to contract for a second straight year and inflation that has exceeded the EU average.

Here is what the main political parties propose on the economic level:

FREEDOM PARTY – FPO

The far-right FPO, which narrowly leads opinion polls, wants deregulation and lower taxes, including:

– Reduction of profit tax for small businesses from 23% to 10%

– Elimination of a carbon tax introduced in 2022

– Price controls during periods of severe food, rent and energy inflation, as well as sales tax reductions on essential products

– Expanding renewable energy while saying Russian gas will continue to be needed

– Higher annual increases in pensions, especially small and minimum state pensions

PARTY OF THE AUSTRIAN PEOPLE – OVP

Second to the FPO in the polls, the governing Tories also want lower taxes and lighter regulations, including:

– The progressive reduction of labor taxes

– Paying profit tax at least 0.5% lower than the average rate among EU member states

– Gradual reduction of taxes as a percentage of GDP to 40% from 43.1% in 2022, according to OECD data

– Introducing automatic expiry dates for laws introducing new regulations so that they are only renewed if necessary

– Elimination of two regulations for each new one introduced

– Self-sufficient supply of energy based on renewable sources, without mentioning a time frame

SOCIAL DEMOCRATS – SPO

Polling around 20% support, the left-wing SPO is calling for a shift in the tax burden from income to assets, saying this will allow them to cut taxes for 98% of taxpayers.

They propose:

– The reduction of the profit tax to 25% from the 23% to which the OVP-Green coalition reduced it

– Special taxes on energy companies and banks that profited from rising energy prices and higher interest rates

– The gradual transformation of state holding OBAG into the main vehicle for promoting renewable energy and the green transition, including using dividends paid to it by companies such as oil and gas firm OMV and A1 Telekom Austria (OTC:) to finance it

– Rapid reduction of dependence on Russian gas

– Testing a four-day work week with companies and unions

NEW AUSTRIA – NEOS

The Liberal Party polls around 10% and demands:

– Lowering labor taxes so workers take home more pay

– Eliminate capital gains tax on long-term stock market investments to boost savings returns and domestic investment

– Funding more apprenticeships and supporting vocational education to ensure it is considered equal to academic qualifications

– Divestment of fossil fuels and Russian gas, establishment of “one-stop shops” to speed up approval of infrastructure needed for green transition

– Raising the retirement age to reflect longer life expectancy

Greens

In coalition with the OVP since 2020 and polling around 8%, the left-wing Greens want a more active industrial policy and higher taxation of wealth instead of income.

They propose:

– Reducing subsidies for environmentally damaging businesses to help finance infrastructure for the green transition

– Extending a carbon tax introduced in 2022 and the “climate bonus” paid to Austrians from the proceeds

– Abolishing licenses for around half of the jobs that require them today, such as travel agents, chefs and goldsmiths

– Make Austria derive all its power from renewable sources by 2030 with a law requiring it to move away from Russian gas

– Progressive reduction of the working week to 35 hours once the shortage of skilled workers has been resolved