DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/e6a438/oecd_economic_surv) has announced the addition of OECD Publishing's new report "OECD Economic Surveys: Austria 2011" to their offering.
The Austrian economy has weathered the crisis well on the back of an export led recovery. Austria, like other export oriented economies, was hit hard by the crisis but the currently strong recovery offers a golden opportunity to strengthen reform efforts, in particular in the following areas: i) subsidised avenues into early retirement should be eliminated; ii) work incentives of low skilled workers should be strengthened and their cost of employment reduced; iii) early child care infrastructure and full day schooling should be expanded; iv) education reforms should continue; and v) competition should be further enhanced in network services, as well as in liberal professions. These reform directions are essential for the future growth performance, because positive external shocks in the wake of European integration will most likely not continue with the same strength as in the past two decades, and drivers of growth will depend more on domestic sources. Fiscal vulnerabilities, while low in international comparison, have increased. Public finances worsened markedly in the crisis, driven by discretionary stimulus, financial sector support measures and the operation of automatic stabilisers. The recent consolidation measures may not suffice to prepare for future risks and challenges, not least related to ageing. In these circumstances, Austria should make full use of the performance budgeting framework that it plans to introduce from 2013, for more assertive spending prioritisation and cost benefit checks. Despite some recent improvements, the tax structure also remains biased against employment and growth and offers room for reform. Key fiscal policy priorities should be: i) accelerating fiscal consolidation to bring the debt to GDP ratio below 60%; ii) taking more frontloaded action to meet foreseeable medium to long term spending pressures; iii) reforming the Domestic Stability Pact and the Fiscal Equalisation Act and implementing the fiscal framework reforms at all levels of government; iv) seeking efficiency gains in all major spending areas; and v) switching the tax burden away from labour and entrepreneurship toward less distortive taxes. Read more inside OECD Economic Surveys: Austria 2011
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