New IV´s President Dissatisfied with Political System
The corruption scandals oft he past would damage Austria´s reputation as business location, Georg Kapsch thinks.
Georg Kapsch, President of the Federation of Austrian Industries, thinks that there is much to do in Austria. The education system, the labor market and the tax system must be reformed, IV´s new chairman says. „If 24% of the pupils in Vienna cannot read texts to an adquate level, then it is obvious where the problems are.“ Kapsch says in an interview with the Austrian newspaper „Presse“.
Kapsch thinks that Austria needs even more foreign skilled workers. The „Red-White-Red-Card“ would be still too unknown. What is more, skilled workers should stay longer in the working process, he says. „Europe is open and there is no danger of a mass invasion of foreign workers.“ For Kapsch, one of Austria´s biggest problems is the gap between initial salaries and the salaries at the end of the working time. In Scandinavia, there is a wage increase factor of 1.6, in Austria the factor reaches 2.7. „This is a huge difference.“
The current problems of the Spanish and the Italian labor market would be due to the high degree of labor market regulations, Kapsch argues. In Austria, there would be a lack of flexibility, he thinks.
Regarding Austria´s competitivness, Kapsch thinks that Austria is not too different from other countries. However, the processing of corruption cases would take too much time and would not be effective. „This causes a bad picture and influences the investment behavior of foreign companies in Austria.“