Structural policy

In 2000, the heads of states and governments of the EU agreed on the Lisbon Strategy, which is a European commitment to bring about economic, social and environmental renewal in the European Union (EU).

The Austrian government implements the Lisbon agenda through an ambitious reform programme in product, labour and capital markets. The Austrian Cardiff Report mirrors this ambitious reform agenda to raise productivity and employment while also enhancing social and environmental sustainability at the same time.

The Austrian government has taken comprehensive measures since 2000 to strengthen the competitiveness of the Austrian economy and to create a business environment that attracts investments.

Product market reforms:

• Reform of the Competition Law: Creation of the Federal Competition Authority
• Reform of public procurement
• Liberalisation of the electricity industry, gas and telecommunication markets
• New Shop Opening Hours Act
• Simplification of regulatory framework for SMEs and start-ups
  • Reduction of start-up costs ("Neugründungsförderungs-Gesetz")
  • Easier access to several professions ("Gewerbeordungsnovelle")

Fostering the transition to a knowledge-based economy

• Measures to stimulate R&D and innovation in the business sector (tax allowance, establishment of the National Foundation for R&D and innovation...)
• Streamlining the framework for financial support on R&D
• Reform of the University Law: Universities obtain full autonomy on January 1^st, 2004
• "Fachhochschulen" (advanced technical college, a newly established form of colleges) will be endowed with additional € 72m for educational projects on innovation from 2004 to 2006.

Improving competitiveness

• Tax relief, especially corporate tax cuts by 9% to 25%
• Group taxation ("Gruppenbesteuerung") already with majority share holding

Capital market reforms:

• Establishing of the Financial Market Authority
• Capital market offensive to stimulate the Austrian capital market:
  • Corporate Governance Code
  • Equity-based private pension scheme ("Zukunftsvorsorge")

Labour market reforms:

Active integration of the long term unemployed, older workers and youth with the following:

• Offering more education incentives and by implementing the Growth and Competitiveness Package and measures such as the
• “Aktion 56/58”: Lowering of non-wage labour costs for older workers
• Speeding up the process of re-integration, especially for older workers. Please see a list of detailed measures in the Austrian National Action Plan (NAP) for Employment 2003
• Labour market initiatives:
  • Premiums for the training of apprentices: since the end of 2002 € 65m have been paid out
  • Additional € 23m for the implementation of the € 200m special programme starting 2004
  • Reform of apprentice training programmes: shift to a modular system will divide 260 professions into 100 basic modules, only in the second year of training specialisation will take place
  • Extension of the provision of schooling for 5.500 trainees without apprenticeships
  • Personal on-the-job assistance for persons with significant physical disabilities (€ 3m)

• Lisbon strategy
• Austrian National Action Plan (NAP) for Employment 2003

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