1. society
2. work
3. unemployment

(final)
Section II
National Reform Programme
Integrated Guidelines
Manual
PART A
MACROECONOMIC POLICY
FOR
GROWTH AND EMPLOYMENT
2
GUIDELINE 1
TO SECURE ECONOMIC STABILITY WITH A VIEW TO SUSTAINABLE GROWTH
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Balanced budget over the
business cycle
In 2001, even the cyclically adjusted figures showed
the first balanced budget since 1973 and it was
maintained for 4 years.
This constituted de facto the prerequisite for the
2004/2005 tax reform.
GL 2: Safeguards economic and budgetary
sustainability, a prerequisite for more jobs.
Continuously
2005 Tax Reform Act
(Steuerreformgesetz)
The second phase of the 2004/2005 tax reform
involves in the main a reduction and simplification of
the income-tax rate, a reduction of corporate income
tax from 34% to 25% and the introduction of a grouptaxation regime.
Reducing the income-tax rate increases disposable
income while the corporate income tax reform together
with the group-taxation regime increases Austria's
attractiveness as a location.
GL 6: The ability of the employment markets to adapt
has an impact on the dynamism and smooth operation
of EMU.
In force since
1 January 2005
Reducing public expenditure while at the same time
improving quality releases more resources for new
economic activity.
GL 3: Promotes an efficient allocation of resources,
which is geared to growth and jobs.
Reduction of the total tax
ratio to 40% of GDP by 2010
GL 10 and GL 14: Strengthens and creates more
competitiveness.
Continuously
3
GUIDELINE 2
TO SAFEGUARD ECONOMIC AND FISCAL SUSTAINABILITY AS A BASIS FOR MORE JOBS
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Harmonisation of pension
systems
In the course of the 2003 and 2005 pension reforms,
an important interim goal was attained
and the prerequisite for a future-oriented system
created.
Makes an important contribution to ensuring that public
finances can be covered in the long term; key concern
of GL 1.
In force since 2005
GL 3: Promotes an efficient allocation of resources,
which is geared to growth and jobs.
GL 5: Strengthens the consistency of macroeconomic,
structural and employment policies.
GL 18: Promotes a lifecycle approach to work.
Strengthening the second
and third pillars
The harmonisation of the systems in one single
insurance system making up the first pillar will improve
the diversification of the financial risk of increased life
expectancy and thereby also raise the allocation
efficiency of national economic resources.
GL 3: Promotes an efficient allocation of resources,
which is geared to growth and jobs.
Guideline 3
Tp promote a growth and employment-oriented and efficient allocation of resources
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Research billion
Loan-financed billion for technology, distribution of
which will last until 2010, thereby giving an additional
boost to achieving the 3%-target of research funding.
GL 7: Increases and improves investments in R&D, in
particular in the private sector.
2005 Growth and
Employment Act
(Wachstums- und
Beschäftigungsgesetz)
4
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Act on the Promotion of
Business Start-ups
(Neugründungsförderungsgesetz - NeuFöG)
Under the 2000 Tax Reform Act, the Act on the
Promotion of Business Start-ups (NeuFöG) was
adopted. This exempted persons starting up new
businesses (provided they fulfilled certain conditions)
from certain charges, fees and contributions. This
measure has since proved its value as an instrument
of competition and labour-market policy.
GL 15: Promotes a more entrepreneurial culture and
creates a supportive environment for SMEs.
Adopted under the
2000 Tax Reform Act;
since renewed
2005/2006 Regional
Employment and Growth
Offensive
The aim of this campaign is to encourage job-creation
investment of €1.18 billion in the regions in order to
stimulate growth and employment.
Reducing the corporate
income tax rate from 34% to
25%
Administration reform
Measure forming part of the 2005 tax reform.
GL 17: Implements employment policies aiming at
achieving full employment, improving quality and
productivity at work, and strengthening social and
territorial cohesion.
Reduces the tax and fiscal-charges burden (see GL 1)
Administration Innovation
Programme
(VerwaltungsInnovationsProgramm - VIP)
In order to make administrative action more citizen and
business friendly and more efficient, the reform
measures have been grouped together in an
Administration Innovation Programme. Its
implementation will ensure Austria's competitive
advantages, and increasing annual savings in the
Federal Administration release more resources for new
economic activities.
Has positive employment effects within the meaning of
GL 17: persons starting up new businesses are
granted a 7 percent-point reduction in non-wage labour
costs if they already take on employees in the year in
which the business starts up.
Memorandum signed
on 8 August 2005
In force since 1
January 2005
Since 2000, 150 innovative reform projects - very small
or large like the police and finances reform (with 2/3
completed successfully) - have been implemented.
This has improved the supply of services to citizens,
speeded up bureaucracy and at the same time made
savings of around EUR 1,5 billion, i.e. combined
budget savings of EUR 7,4 billion.
GL 9: Facilitates the spread and effective use of ICTs
and builds a fully inclusive information society.
In progress
GL 14: Creates a more competitive business
environment and encourages private initiative by
improving regulations.
5
GUIDELINE 4
TO ENSURE THAT WAGE DEVELOPMENTS CONTRIBUTE TO MACROECONOMIC STABILITY AND GROWTH
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Productivity-oriented
development of salaries
Wage-setting strategy of the social partners with a
view to the competitiveness of the export economy.
GL 22: Ensures more employment-friendly labourcosts developments and wage-setting mechanisms.
Continuously
GUIDELINE 5
TO ENSURE MORE COHERENCE BETWEEN MACROECONOMIC POLICY, STRUCTURAL POLICY AND EMPLOYMENT POLICY
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Diversified packages of
measures primarily on the
supply front
The packages of measures primarily on the supply
front have been designed not only to achieve high
national economic returns but also to increase the
confidence of consumers and enterprises:
• priority infrastructure expenditure
• greater investment incentives
• increased science and education expenditure.
GL 23: Expands and improves investment in human
capital.
Continuously
GUIDELINE 6
TO CONTRIBUTE TO A DYNAMIC AND WELL-FUNCTIONING EMU
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Harmonisation of pension
systems
With regard to pension entitlements, the pension
systems for public and private employees have been
made completely open.
Cross-reference to employment policy, in particular
GL 21. The reduction in the high marginal costs
arising with a change of job increases the mobility of
the workforce.
In force since
1 January 2005
6
ACTIONS
DESCRIPTION.EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
New system for severance
payment (Abfertigung Neu)
A modern labour market and the changed
requirements of employers mean that there is also a
need for an up-to-date compulsory employee pension
scheme. In particular, it was in the past above all
the loss of the right to a severance payment by an
employee who handed in his notice which
discouraged mobility. The present measure has
decoupled severance-payment entitlements from the
employer and individualised them.
GL L21: Promotes flexibility combined with
employment security.
In force since 1 July
2002
7
PART B
MICROECONOMIC REFORMS
TO
RAISE GROWTH POTENTIAL
8
9
GUIDELINE 7
TO INCREASE AND IMPROVE INVESTMENT IN R&D, PARTICULARLY BY PRIVATE BUSINESS
GUIDELINE 8
TO FACILITATE ALL FORMS OF INNOVATION
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
Research billion
EUR 1 billion for the period 2005 to 2010; further
action for research promotion in order to attain the goal
of raising R&D spending to 3% of GDP.
Gaining and extending a technology lead in order to
maintain the competitiveness of Austrian enterprises;
site protection (GL 10).
Enhancing competence where science and business
interact. The effects will only be felt in the medium and
long term, but the importance of the signal given
should not be underestimated.
Helps in the long-term securing of high employment
and improves quality at work (e.g. GL 17).
Tax concessions for contract research in income tax
(research allowance or tax bonus); this should enable
a wide SME base to take up research.
Strengthens the competitiveness of Austrian SMEs
and provides site protection (GL 10 and GL 15).
R&D
SME promotion
offensive
Improvement of the framework conditions for venturecapital markets and increasing the share of investment
in private equity and venture capital. This measure
should provide support for private innovations and
improve the financing possibilities for "risky"
investments.
Headquarters policy
In the course of privatisation, the headquarters policy
aims to maintain R&D capacities in Austria, or bring
them to Austria.
STATUS
2005 Growth and
Employment Act
Long-term growth and employment effects (helps to
achieve the objectives of macroeconomic and
employment policy guidelines - e.g. GL 3 and GL 17).
2005 Growth and
Employment Act
Long-term positive growth and employment effects
(cross-reference to various employment and
macroeconomic policy guidelines).
Long-term positive growth and employment effects.
Cross-reference to GL 10 and GL 15 and to various
employment and macroeconomic policy guidelines).
10
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Reform of the Austrian
research incentive
system
Greater funding, harmonisation of subsidy guidelines,
consolidation of programmes, development of
instruments.
Gaining and extending a technology lead in order to
maintain the competitiveness of Austrian enterprises;
site protection (GL 10).
Processes are being
regularly evaluated;
the reforms are
ongoing
Considerably increases transparency, not least as
regards spending.
Reform of the grant system; greater sectoral focusing
of synergy effects through Europe-wide programmes
(GL 13).
Long-term growth and employment effects (helps to
achieve the objectives of macroeconomic and
employment policy guidelines).
Strategic
science/business
partnerships
Objective: Sustainable enhancing of competence
where science and business interact; programmes:
Kind, Knet, CD-Labors (operational); Laura Bassi
Centers (planned).
Close link with GL 10 (industrial base), GL 23
(investment in human capital) and GL 24 (education
and training).
In progress
A bottom-up incentive intended to have a wide-ranging
effect is primarily targeting enterprises facing particular
obstacles to research and innovation (especially
SMEs).
Technology-transfer
programmes aimed
primarily at SMEs
Improving the RTD competence of Austrian
enterprises. Programmes: protec, prokis, Digitale
Wirtschaft/IKT, LISA, CIR-CE.
Aims to encourage cooperation between innovative
Austrian enterprises but also between innovative
Austrian enterprises and foreign enterprises. Centred
both on the building up of a transnational network and
on technology transfers and quality guarantees.
Increases the competitiveness of Austrian SMEs (GL
15).
Regular evaluation
and continuous
adaptation
Long-term positive growth and employment effects
(interaction with various employment and
macroeconomic policy guidelines).
By building up sectoral or thematic technology and
impulse programmes, should secure a long-term
competitive advantage for Austrian business in the
advanced-technology sector.
11
ACTIONS
DESCRIPTION/EXPECTED EFFECT
Promotion of young
academics
GUIDELINE CROSS-REFERENCE
Positive impact on the quality of the human capital of
Austrian enterprises (GL 10 and GL 15). This action
will at the same time have positive effects for the
objectives of GL 17 and GL 18 concerning women.
STATUS
In progress
Helps to guarantee high employment and improves
quality at work (employment policy GL 17, GL 23 and
GL 24).
Greater mobility of
national and foreign
researchers
Better comparability of academic qualifications,
bilateral social-insurance agreements.
Adjustments in
vocational training
Modularisation of the dual education system,
introducing more flexibility to trades requiring
apprenticeship training and the qualification of the
vocational trainers.
Mobility leads to the transfer of knowledge, which in
turn creates a positive feedback in national research.
Responds postively to the challenges of globalisation
(GL 13), of the internal market and of flexibility on the
labour market (GL 21).
Supplements the measures and objectives in GL 18,
GL 23 und GL 24.
Beginning of 2006
This is intended to bring trades requiring
apprenticeship training into closer touch with the
requirements of everyday life and practice.
Innovation-friendly
market conditions
Raising competition intensity in markets for goods and
services; removal of market-access barriers in
individual markets, simplification of the regulatory
system and increasing market transparency.
Promotes flexibility in the requirements imposed by the
awarder of the public contract in order to strengthen
the competitive advantages (GL 10 and GL 13).
Rigorous inclusion of the innovation aspect in the
awarding of public contracts. Working out a pattern for
framing calls for tender in a way which encourages
innovation.
12
GUIDELINE 9
TO FACILITATE THE SPREAD AND EFFECTIVE USE OF ICTS AND BUILD A FULLY INCLUSIVE INFORMATION SOCIETY
ACTIONS
Implementation of the "i2010"
strategy
Broadband initiative
Administration Innovation
Programme (VIP)
DESCRIPTION/EXPECTED EFFECT
Objective: Elaboration of a national implementation
strategy on the basis of the three pillars of the "i2010"
strategy (creating a uniform European information
area; increasing innovation and investment in ICT
research; building an inclusive European information
society).
Knowledge and innovation are the essental driving
forces behind sustainable growth, and the building of a
fully inclusive information society which is founded on
the widespread use of ICTs in public services, in small
and medium-sized enterprises and in private
households is the key challenge.
Objective: Increase availability from the current 80% to
98%; more intensive continuation of the previous
initiative should above all provide rural regions with
access to the broadband internet. The Federal
Government is doubling the previous funding of €10
million (the Länder are to contribute equivalent
amounts).
Concentrating on regions which have hitherto been
undersupplied or lacked access represents a very
conscious attempt to give a new impetus to
entrepreneurial innovation and make a positive impact
on employment.
Creation of a modern, efficient public administration:
82 out of 132 planned reform projects have been
completed successfully to date, under the EU-wide
benchmarking system Austria's eGovernment rating
managed to improve from 11th place (2003) to 2nd
place (2005).
Savings in administration are making available
resources, which are being redeployed as part of a
future-oriented economic policy.
GUIDELINE CROSS-REFERENCE
STATUS
Close link with GL 7, GL 8 and GL 10.
In progress
Strengthens the competitiveness of Austrian
enterprises; secures the attractiveness of Austria as a
location through better access to modern information
technology and infrastructure (GL 10).
2005 Growth and
Employment Act
Strengthens the competitiveness of Austrian SMEs
through better access to modern information
technology and infrastructure (GL 15).
Wider access to an efficient information-technology
infrastructure creates the technical conditions for a
competition-friendlier business environment and a
simplification of regulations, e.g. eGovernment (GL 14)
and has positive effects on employment (GL 17).
Close link with GL 3 (efficient allocation of resources).
A modern public administration, simplification of
regulations and internet-based administrative services
have a positive effect on the competitiveness of
Austrian enterprises and reduce the burden on private
individuals with regard to job-seeking, social security,
training and mobility (GL 14; GL 19 & GL 20).
In progress
13
ACTIONS
DESCRIPTION/EXPECTED EFFECT
Assistive technology for the
elderly
Planning of application-oriented R&D activities to
strengthen research into "assistive" technologies with
the medium-term goal of enabling above all the elderly,
people in need of nursing care and the handicapped to
enjoy a better quality of life in their own homes longer
through the use of adaptive and supporting information
technologies.
GUIDELINE CROSS-REFERENCE
STATUS
Cross-reference to GL 7, GL 8 and GL 10.
Advanced planning
stage and feasibility
study
Through the development of innovative new
technologies, the early involvement of all players at
local, regional and federal level and the taking account
of regulatory, national and EU legislative issues, this
initiative is expected to have a considerable impact on
the building up and further development of appropriate
markets. Close cooperation between these activities
and European initiatives in this area (e.g. the launching
of an Article 169 initiative in the framework of the 7th
RP: "Ambient Assistive Living" or initiatives associated
with "i2010") will ensure the lasting cohesion of
national and European measures.
GUIDELINE 10
TO STRENGTHEN THE COMPETITIVE ADVANTAGES OF EUROPE'S INDUSTRIAL BASE
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Improvement of the legal
framework
Shortening of procedures by exploiting synergies
(regional planning and legislation governing civil
engineering projects, avoidance of duplication of effort
by consolidating procedures).
Procedures Acceleration Act
(Verfahrensbeschleunigungsgesetz).
Considerable synergies arise with the macroeconomic
objectives set (e.g. in GL 3).
Procedures
Acceleration Act in
force since 1
September 2005
Technology-Financing
Programme
(Technologiefinanzierungsprogramm)
Combining of guarantees for equity investments in
technology-oriented SMEs with a guarantee for
subordinated loans and equity investments of venture
capital funds within an "aws" (Austria
Wirtschaftsservice GmbH) framework agreement.
Equity investments are thus doubled by outside capital.
Current initiatives and actions to strengthen the
competitiveness of Austrian industry and business are
indicated mainly under GL 7 (R&D) and GL 8
(Innovation).
In progress
14
Strengthening the capital
market
In recent years, there has been lasting consolidation of
the national capital market. The financing of research
and development is a typical capital-market task.
Synergies with the macroeconomic objectives set in
GL 3 and GL 5.
GUIDELINE 11
TO ENCOURAGE THE SUSTAINABLE USE OF RESOURCES AND STRENGTHEN THE SYNERGIES BETWEEN ENVIRONMENTAL
PROTECTION AND GROWTH
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
„Klima:aktiv“ Impulse
Programme
Objective: Effective change in the market for climaterelevant technologies (rapid and broad-based market
launch of climate-friendly technologies in the sectors of
construction, mobility, enterprises, electricity
conservation and renewable energies).
In addition to contributing to ecological sustainability,
encourages innovative technology sectors,
compensation for market failure in the area of
sustainable use of resources.
Since 2005
Funding: €3 million per annum (until 2012).
Tax measures
•
Increase in taxes on mineral oil and staggering tax
rates based on sulphur content
•
Introduction of a levy on coal and natural gas
•
Reorganisation of the compensation for energy
levies
A rigorous sustainability policy in the field of energy
and natural resources makes possible the decoupling
of growth and resource intensiveness (e.g. oil), the
correcting of market failure (globalisation of external
costs; GL 13) and the safeguarding of social, economic
and budgetary sustainability (GL 2).
already implemented
(as part of the first
phase of the tax
reform - in force since
1 January 2004)
In addition, making available for a limited period of time
of public funds to
•
•
Promote the installation of particle filters
Grant tax concessions to stimulate the use of
biofuels
As from 1 July 2005
As from 1 October
2005
15
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
National measures to
implement the Environmental
Technologies Action Plan
(ETAP)
Development of a national action plan
Not only contributes to ecological sustainability but
also encourages innovative technology sectors and
consequently the gaining and extending of a
technology lead in order to maintain the
competitiveness of Austrian enterprises (GL 10).
Being implemented
Compilation of a database on environmental
technologies;
Awarding of pilot projects for the establishment of
technology platforms;
Collaboration in the development of performance
targets for production processes and services;
Site protection through use of comparative advantages
and first-mover advantages on globalised markets(GL
13).
Execution of studies to encourage sustainable patterns
of production and consumption;
Strengthens the competitiveness of Austrian SMEs
(GL 15).
Cooperation in the implementation of ETAP at the
international level;
Long-term positive growth and employment effects
(helps to achieve the objectives of macroeconomic and
employment policy guidelines).
Advisory Council on Environmental Technology (to
support national activities and actions in international
networks for ETAP implementation).
Sustainability and climate
strategy
Two fundamental national strategies from the year
2002 constituting one package ("Shaping a
Sustainable Future for Austria" and the Climate
Strategy 2008-2012") are currently undergoing
evaluation and adaptation.
Decoupling of growth and resource intensiveness,
globalisation of external costs (GL 13) and the
safeguarding of social, economic and budgetary
sustainability (GL 2).
Introduction of ecological
considerations into public
procurement
Catalogue of criteria entitled „Check it!“ is addressed to
units engaged in purchasing and procurement, in
particular Länder and local authorities.
A rigorous sustainability policy not only safeguards
long-term high-quality jobs (GL 17), but also supports
macroeconomic policy initiatives to achieve efficient
allocation of resources (GL 3) and economic and
budgetary sustainability (GL 2).
BeschaffungsServiceAustria (BSA) is a procurement
service agency financed by the Natural Resources
Ministry (Lebensministerium) and facilitating
environmentally sound procurement practices.
Already set up
Evaluation and
adaptation being
implemented
Implemented
16
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Promotion of renewable
sources of energy
(expansion of power-plant
capacities with simultaneous
use of energy-saving
potential); amendment of the
Eco-Electricity Act
(Ökostromgesetz)
Transposition of Directive 2001/77/EC under the EcoElectricity Act - Federal Law Gazette I No. 149/2002):
targets for the year 2008 (9% from small hydro-power
stations; 4% from other ecological sources) may
already be attained in 2005. Funding: from 2003 to
2005 - about EUR 200 million; in 2006 about EUR 300
million.
A rigorous sustainability policy in the field of energy
and natural resources makes possible not only the
decoupling of growth and resource intensiveness (e.g.
oil) but also creates the institutional conditions for
innovations in environmental technology.
Being implemented
Action plan to increase the
Austrian economy's efficient
use of resources
Dialogue process with the business sector, the
scientific community and civil society to encourage the
efficient use of resources (definition of reduction and
decoupling targets, guidelines for their attainment and
suitable monitoring measures).
Not only contributes to ecological sustainability but
also encourages innovative technology sectors and
compensates for market failure in the sustainable use
of resources.
In progress;
completion by 2006
Extension of the deadline for the start-up of plants
entitled to compensation for power fed into the grid at
the rates for previously approved plants based on
biomass (solid and liquid), biogas and revitalised small
hydro-power stations to 31 December 2007; this will
safeguard up to 3 000 jobs in the long run.
On the basis of its considerable future market potential
and high technical complexity (and the export
possibilities and spillover effects it brings with it), such
technology helps to make Austrian enterprises more
competitive internationally (link to GL 10, GL 13, GL 14
and GL 15). Accordingly, a rigorous sustainability
policy not only safeguards long-term high-quality jobs
(GL 17) but also supports macroeconomic policy
initiatives to achieve an efficient allocation of resources
(GL 2 and GL 3).
17
GUIDELINE 12
TO EXTEND AND DEEPEN THE INTERNAL MARKET
ACTIONS
DESCRIPTION/EXPECTED EFFECT
Transposition into national
law of the measures in the
Financial Services Action
Plan (FSAP)
In recent years a large number of Directives governing
financial services have been transposed into national
law. One of the last milestones will be the adoption of
the new capital adequacy rules for banks (Basel II).
National transposition of the
Single European Payment
Area (SEPA)
Setting up of the Austrian Payments Council (APC) in
order to establish a common position of Austrian credit
institutions and defend it internationally.
GUIDELINE CROSS-REFERENCE
Contributes to the competitiveness and openness of
the Austrian financial market and thereby results in
greater overall economic efficiency; it is easier to meet
the challenges of globalisation and reap its rewards
(GL 13).
An efficient capital market increases the
competitiveness of Austria's enterprises and facilitates
the (innovative) start-up of businesses (GL 8, GL 10
and GL 15).
Facilitates financial transactions within the Euro area;
thereby increases the competitiveness of enterprises
(GL 10, GL 14 and GL 15).
Making of the necessary organisational and technical
changes to Austrian payment transactions for
transposition of SEPA.
Setting up the clearing
agency for stock-exchange
transactions (CCP.A)
New basis for the clearing and settlement of security
trades.
STATUS
Implemented with the
exceptionof Basel II
Completed
By 2010
An efficient capital market increases the
competitiveness of Austria's enterprises and facilitates
the (innovative) start-up of businesses (GL 8, GL 10
and GL 15).
Started in August 2004
18
GUIDELINE 13
TO ENSURE OPEN AND COMPETITIVE MARKETS INSIDE AND OUTSIDE EUROPE AND TO REAP THE BENEFITS OF GLOBALISATION
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Internationalisation offensive
„Go international“
Promotion of exports of goods and services as well as
direct investment.
Favours long-term site protection (close interaction
with GL 10 - strengthening the industrial base).
Runs until the end of
2006; extension
already decided
Enhancing the competitive position of the Austrian
export trade.
Funding of EUR 50 million (until year-end 2006).
Strong presence on international markets and high
export levels are the outcome of the good competitive
position of Austrian enterprises, while conversely the
resulting economies of scale afforded by large sales
markets are in turn having a positive effect on
competitiveness.
Revision of competition law
Modernisation of the legal framework for competition
supervision; adaptation of the substance law on cartels
to the European Union's competition legislation;
notification of mergers of enterprises to the Federal
Competition Authority; lifting the notification threshold
in merger control (relief for both enterprises and the
Federal Competition Authority).
Not only safeguards public finances but also has longterm growth and employment effects (helps to achieve
the objectives of macroeconomic and employment
policy guidelines - every 3rd job in Austria is exportdetermined).
Simplifies procedures - GL 14 (more competitive
business environment).
Enters into force on
1 January 2006
Supports long-term site protection (GL 10).
19
GUIDELINE 14
TO CREATE A MORE COMPETITIVE BUSINESS ENVIRONMENT AND ENCOURAGE PRIVATE INITIATIVE THROUGH BETTER
REGULATION
GUIDELINE 15
TO PROMOTE A MORE ENTREPRENEURIAL CULTURE AND CREATE A SUPPORTIVE ENVIRONMENT FOR SMES
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
2004/2005 tax reform
General reduction of tax rates. Preferred taxation for
undistributed profits of sole proprietorships and
partnerships; reduction of the corporate income-tax
rate from 34% to 25%; introduction of a modern grouptaxation regime.
A supportive environment for enterprises increases the
competitiveness, innovative power and dynamism of
European enterprises (GL 8 & GL 10); this makes it
easier to meet the challenges of globalisation and reap
its rewards (GL 13).
STATUS
Since beginning of
2005
Competitive enterprises and in particular the innovative
start-up of businesses and SMEs help to create and
safeguard high-quality jobs (GL 17) and thereby
safeguard economic and budgetary sustainability
(GL 2).
Austrian Corporate
Governance Code
Administrative procedures
offensive
Practicable guidelines for the management and
supervision of companies. Enhances the quality of the
Austrian capital market and strengthens investor
confidence.
The adaptation of the Austrian Corporate Governance
Code to the requirements of international business
dynamism helps to strengthen the competitiveness of
the industrial base (GL 10), while at the same time
companies have to fulfil their decisive role in assuming
their social and ecological responsibilities: GL 13
(sustainable use of resources); GL 23 (investment in
human capital).
Newly created Procedures Acceleration Act will
contribute to the rapid realisation of investment
projects (power stations, eco-electricity projects, etc.,
with a volume of € 6.2 billion).
Renewing procedures for eco-electricity projects
contributes to the sustainable use of resources and
thereby also interacts positively with GL 10 and GL 11
as well as in the field of macroeconomic policy GL 3.
Since beginning of
2005
In force since 1
September 2005
20
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Better regulation
Beter regulation should help to reduce the burden on
administration and business. Guidelines for drafting
bills and structuring the rules for the legislative process
should enhance the quality of existing as well as new
legal rules. In addition, the impact in terms of
bureaucratic effort and the consequences for
competitiveness have to be taken into account more
effectively.
The objectives set are closely related to those in GL
10. But there are also major synergies with the
macroeconomic-policy objectives in GL 3.
In preparation
Regional Employment and
Growth Offensive 2005-2006
Incentive for investments designed to create and
safeguard jobs, projects of large enterprises in
regional-aid areas, innovative investment by business
promoters and SMEs as well as pilot tourism projects;
volume of funding: € 1.18 billion; expected effects:
some € 3 million in in investment and around 20.000
jobs.
Has a positive effect on employment, particularly in
economically weak regions, strengthens social and
territorial cohesion (GL 17).
Supports macroeconomic-policy guidelines to achieve
economic stability (GL 1), sustainability (GL 2) and
efficient allocation of resources at national economic
level (GL 3).
From September 2005
until end of 2006
Improving corporate finance
Support programme focusing on corporate strategy
and corporate finance (alternative sources of funding
for enterprises in the light of Basel II).
Facilitates business innovation and the innovative
start-up of businesses (GL 8).
From Autumn 2005
In view of the scope and complexity of the operations
of credit institutions and the structure of the Austrian
banking system, large credit institutions playing an
important role in the system are to report adequately
about the risks involved in their operations, whereas
smaller banks are not to be excessively burdened by a
disproportionate workload.
Strengthens the international competitiveness of
Austrian banking institutions through simplified
reporting requirements - reaping the benefits of
internationalisation and globalisation (GL 13).
Supervisory reporting system
Has positive employment effects - as regards quantity
and in particular quality at work (GL 17).
Is to enter into force on
1 January 2007 (at
same time as Basel II)
21
GUIDELINE 16
TO EXPAND, IMPROVE AND LINK UP EUROPEAN INFRASTRUCTURES AND COMPLETE PRIORITY CROSS-BORDER PROJECTS
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
Development of power-plant
capacities
The continuous development of the Austrian highvoltage and very-high-voltage networks aims to secure
the power supply in Austria as well as an efficient
international power exchange.
Close link also with the objectives in GL 11.
Infrastructure initiative under
the General Transport Plan
Due to the geographical situation of Austria, the main
focus will be on the creation and upgrading of transport
links to Central and Eastern Europe. Funding: EUR
40,5 billion on roads and railways in the period 20002014; also additional financing of EUR 300 million for
2005;
priority railway projects, especially the Brenner Base
Tunnel (completion of planning stage by 2006, which
will also see the Quick Start construction of the pilot
tunnel) and the Kufstein-Innsbruck section (total
investment volume of EUR 1,8 billion with construction
scheduled for completion by 2013).
Contributes to economic stability through the positive
cyclical effects of public investment expenditure
(GL 1); with targeted investment in "future-oriented"
areas, contributes to economic and budgetary
sustainability (GL 2) and efficient allocation of
resources (GL 3).
STATUS
In progress
Since 2003; in
progress
Reduces the factor cost and thereby increases the
competitiveness of industry and business (GL 10 &
GL14).
Has a positive impact on employment (GL 1 & GL 17).
Giving railways priority over roads contributes to a
sustainable transport policy (GL 13).
22
PART C
THE EMPLOYMENT GUIDELINES
23
GUIDELINE 17
IMPLEMENT EMPLOYMENT POLICIES AIMING AT ACHIEVING FULL EMPLOYMENT, IMPROVING QUALITY AND PRODUCTIVITY AT
WORK, AND STRENGTHENING SOCIAL AND TERRITORIAL COHESION
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
2005/2006 Regional Growth
and Employment Initiative
Funding totals EUR 1,18 billion. The planned national
grants total EUR 370 million and are provided by the
Federal Government and the Länder at a ratio of 1:1.
These will be supplemented by the maximum EU funds
mobilisable through the "aws". Moreover, ERP loans
of EUR 405 million are available and further "aws"
liability instruments of EUR 405 million are reserved for
this action.
Close link with the content of GL 15 and GL 16.
Investments to create and secure jobs in regional
development areas.
From September 2005
to end of 2006
Gender mainstreaming
Current levels of implementation: gender budgeting,
gender mainstreaming in legislation, gender
mainstreaming in hospital care, more women in
business and administration.
These measures aim to prevent structurally embedded
unemployment, continue the steep rise in women's
educational attainment level, achieve a fair distribution
of wages and incomes and overcome labour-market
segmentation.
Positive interaction, in particular with the objectives of
GL 21.
3rd GenderMainstreaming
Resolution adopted by
the Austrian Council of
Ministers in 2004;
territorial employment
package
Employment Promotion Act
(Beschäftigungsförderungsgesetz - BeFG)
Skills training initiative targeted on young people and
women. Additional funding of around EUR 284 million
will be made available to facilitate the re-entry and
skills/higher skills training of women and young people.
Interaction with measures under GL 18 und GL 19 (in
particular the combined wage model).
Enters into force on
1 January 2006
24
GUIDELINE 18
PROMOTE A LIFE-CYCLE APPROACH TO WORK
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
AMS-subsidised businessapprenticeship bonuses
Employers providing additional apprenticeships will be
subsidised with a bonus per apprentice and month
(EUR 400 per month and apprentice in the first year of
apprenticeship, EUR 200 in the second year and
EUR100 in the third year).
Close link with GL 23 and GL 24.
Starting in September
2005
Jobs for You(th) ´05
(J4Y ´05)
Youth-specific skills-training and employment
programme. Over 10 000 young people are expected
to be enrolled, over 50% of whom are female. Another
target group comprises persons with only compulsory
schooling.
Synergies with the contents and objectives of GL 23
and GL 24.
Period March 2005 to
December 2005
Individual coaching
The AMS will enhance the skills-training aspect of
programmes for young people. In Autumn 2005, a
joint initiative by employers and the AMS will be
launched for young people out of work for more than
six months.
GL 23 and GL 24.
Autumn 2005 to end of
2006
Modular design of
apprenticeships
(Modularisierung der Lehre)
The training system "modular design of
apprenticeships" is by way of response to the fact that
increasingly specialised companies often are no longer
able to provide apprenticeships that cover the whole
range of an apprenticed trade. The modular approach
should also result in a marked reduction of the
currently around 250 apprenticed trades.
GL 23 and GL 24.
Beginning of 2006
Five-point programme on
female employment
Specific measures at AMS offices; awareness-raising
and support for young women in their career choices;
skills development for those groups most at risk of
losing their jobs; opening up the growing market of
health and nursing occupations; improving the
framework for reconciling work and family life.
Synergies with the objectives of GL 23 und GL 24.
Project stage
completed; concrete
actions in preparation
25
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Extension of working life
Between 2005 and 2007, an appropriate priority
programme is to be carried out for employees aged
40+ and job-seekers aged 50+.
Interaction with GL 20, company-related skills training
(implacement foundation).
Beginning of 2005
Age-compliant work
Aspects of age-compliant work are to be incorporated
into labour-inspection routine (providing counsel to
employees, evaluating age-compliant workplaces).
Measures in this area are closely related to measures
under GL 19.
Beginning of 2006
Labour-Market Reform Act
(Arbeitsmarktreformgesetz)
Revised job-suitability criteria and the obligation for the
AMS to draft personalised action plans.
Synergies in particular with GL 19.
In force since
1 January 2005
Pension-Harmonisation Act
(Pensionsharmonisierungs
gesetz)
Creation of a uniform pension law for the entire active
population and introduction of a transparent and
performance-based pension account.
Modern social-security systems.
In force since
1 January 2005
Positive effects in particular for the mobility of workers.
Makes a major contribution to economic and budgetary
sustainability (GL 2) and efficient allocation of
resources (GL 3).
GUIDELINE 19
ENSURE INCLUSIVE LABOUR MARKETS, ENHANCE WORK ATTRACTIVENESS, AND MAKE WORK PAY FOR JOB-SEEKERS,
INCLUDING DISADVANTAGED PEOPLE, AND THE INACTIVE
ACTIONS
DESCRIPTION/EXPECTED EFFECT
Employment campaign for
people with disabilities
("disability billion")
Under the "disability billion" the AMS general budget
will be supplemented by special measures to ensure
the labour-market integration of people with disabilities.
The new Federal Disability Equality Act (BundesBehindertengleichstellungsgesetz) also includes an
amendment to the Disability Recruitment Act
(Behinderteneinstellungsgesetz) whereby disabled
workers may not be discriminated against and
employers are obliged to make appropriate workplace
arrangements for people with disabilities.
GUIDELINE CROSS-REFERENCE
STATUS
In progress since
2001, Federal
Disability Equality Act
enters into force on
1 January 2006
26
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Early notification of the AMS
by workers at risk of losing
their jobs
Early-intervention strategy, i.e. early agreement with
the (still employed) job-seekers on concrete steps
regarding their renewed job take-up and the early use
of labour-market programme tools to avoid long-term
unemployment.
Interaction with the objectives of GL 17.
In force since
1 January 2005
Action plan for the
unemployed
The action plan makes it possible to adjust reintegration measures to an individual's needs and to
use a targeted combination of a tried and tested
tradition of agreement with incentives for compliance.
Link with GL 17.
In force since
1 January 2005
Services cheque
Introduction of the services cheque is designed to tap
new sources of jobs in services for private households
and thereby facilitate sources of earnings inter alia for
people having difficulties in accessing the labour
market.
See also GL 21.
Enters into force on
1 January 2006
Combined wage model
According to the AMS, there are some 5 000 job
openings which cannot be filled because of inadequate
pay. These (frequently part-time) jobs mainly involve
retail or clerical work or services for businesses. A
subsidy should raise earnings and thereby provide
greater incentive to take up such a job. Moreover,
subsidies to employers create incentives for employing
hard-to-place individuals. The target group are young
adults, older workers and the long-term unemployed.
The subsidy granted to employers amounts to 15% of
gross pay up to a pay limit of EUR 1 000 with a
duration limited to one year.
The present action contributes directly to restructuring
in the field of marginal part-time work. Also
supplements GL 21.
Enters into force on
1 January 2006
27
GUIDELINE 20
IMPROVE MATCHING OF LABOUR-MARKET NEEDS
ACTIONS
DESCRIPTION/EXPECTEF EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
2005 foreign nationals law
package
(Fremdenrechtspaket)
The transposition of three EU Directives will improve
labour-market access for immigrating family members
of established foreign workers from third countries,
extend the right to free movement to relatives of EU
citizens in the descending line and finally harmonise
the rights of long-term resident third-country nationals
and the conditions for residence and employment in
another Member State. To ensure orderly immigration,
individual work permits will be adjusted to the issued
residence permits and periods of residence.
Synergies with the requirements of GL 10 and GL 13.
enters into force on
1 January 2006
GUIDELINE 21
PROMOTE FLEXIBILITY COMBINED WITH EMPLOYMENT SECURITY AND REDUCE LABOUR-MARKET SEGMENTATION, HAVING DUE
REGARD TO THE ROLE OF THE SOCIAL PARTNERS
ACTIONS
DECSCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Fight against pseudocompanies and undeclared
work
Rise in the staff of Austrian law-enforcement units
(KIAB) and extension of their powers.
Increase in the maximum penalties for the illicit
employment of foreign workers
Stronger action against undeclared work positively
encourages proper employment situations – this not
only increases the overall employment rate but also
improves quality at work (positive interaction above all
with employment policy GL 17 & GL 19). Additional
proper employment situations have a positive effect on
social-security systems (macroeconomic policy GL 2).
2005 Growth and
Employment Act
28
ACTIONS
DECSCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Services Cheque Act
(Dienstleistungsscheckgesetz)
Creation of legal and attractive alternatives to
undeclared work in private-household services
(including social insurance protection); if the sum total
of all services cheques submitted exceeds the
marginal earnings threshold (EUR 323), a mandatory
social health and pension insurance scheme comes
into play with a contribution rate of 14,2%.
Interaction with GL 19.
Enters into force on
1 January 2006
2006/08 labour-market policy
programme targeted on
women
Through special skills training, more women in crafts
and technical trades;
Objective: mitigate labour-market segregation and
combat the gender pay gap.
Funding: EUR 15 million.
Austria's social partners will continue efforts to
enhance working-time flexibility at collective-bargaining
levels.
Through the expected positive impact on the
employment rate of women and gender pay gaps,
interaction with economic policy GL 17 (increasing
employment) and GL 22 (wage
developments/differences).
Adopted; period 20062008
Greater working-time
flexibility
GUIDELINE 22
ENSURE EMPLOYMENT-FRIENDLY LABOUR-COST DEVELOPMENTS AND WAGE-SETTING MECHANISMS
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
STATUS
Reforms in the tax and
benefit systems
Incentives in the tax and benefit systems are geared to
eliminating poverty and unemployment traps.
Interaction in particular with employment policy GL 17
(full employment) and GL 20 (labour-market needs);
with those microeconomic policy guidelines aimed
directly at strengthening the competitiveness of
enterprises and business - GL 10 (industrial base) and
GL 15 (SMEs/entrepreneurial culture); and at
macroeconomic policy GL 4.
In progress
29
GUIDELINE 23
EXPAND AND IMPROVE INVESTMENT IN HUMAN CAPITAL
ACTIONS
DESCRIPTION/EXPECTED EFFECT
Quality initiative for
vocational schools (QIBB)
Pilot projects in some strands of vocational schools.
Technical-commercial
schools
ESF Objective 3 measures
•
Encouraging of teaching projects and final
diploma work in cooperation with business
enterprises
•
Crediting of higher curricula towards the
business certificate
•
Upgrading of the wider access certificates
•
Further development of the learninginformation management (LIM) project.
GUIDELINE CROSS-REFERENCE
STATUS
Starts with 2005/06
school year
Interaction with microeconomic policy guidelines aimed
directly at strengthening the competitiveness of
enterprises and business (GL 10 and GL 15).
Under ESF Objective 3, corresponding initiatives are
being taken in schools with a view to facilitating
adjustment to job-market requirements.
Being planned
Continuation of
measures until end of
2006
GUIDELINE 24
ADAPT EDUCATION AND TRAINING SYSTEMS IN RESPONSE TO NEW COMPETENCE REQUIREMENTS
ACTIONS
DESCRIPTION/EXPECTED EFFECT
GUIDELINE CROSS-REFERENCE
Agreement on social-care
occupations
Better recognition of occupations in care for the elderly
and the disabled: undertaking by the Länder to issue
rules on career profiles, fields of activity and vocational
training.
Growth sector social and nursing care, as also covered
by GL 18.
STATUS
Signed 2004;
implementation 2007
30
ACTIONS
DESCRIPTION/EXPECTED EFFECT
Adaptation of technicalcommercial schools
In technical-commercial schools, greater emphasis is
being placed on broad-based education in the schools'
specific strands because this will diversify graduates'
pathways into the world of work both within their own
and within neighbouring occupations, and it will better
prepare them for more job switches in future.
GUIDELINE CROSS-REFERENCE
Close link with microeconomic policy guidelines aimed
at competitiveness, flexibility and an entrepreneurial
culture (GL 10 and GL 15).
STATUS
Being planned
Introduction of e-learning sequences should reduce the
number of hours students are required to be present.
Contribution to making it easier to reconcile vocational
further training and private/family life.
Amendment to the
Vocational Training Act
(Berufsausbildungsgesetz)
The modular design of vocational training should
enable more employers to train apprentices and create
conditions for better dovetailing of initial training and
further training.
Training should be practice-oriented (see also GL 18);
this has positive effects for the competition framework
conditions in GL 14 and GL 15.
Enters into force on
1 January 2006
31