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Today in Austria: A round-up of the latest news on Friday 

Find out what's going on today in Austria with The Local's short roundup of the news.

Cafe in the Naschmarkt
JOE KLAMAR / AFP

Opening steps ‘possible’ in May, says expert

Opening steps may be possible for Austria in May,  simulation expert Niki Popper has told ZIB. He said modelling showed the situation will get better “very soon”, but he would like to see infections reduce faster.

He said the lockdown in the east was working, even if the willingness to participate is decreasing, the Kurier newspaper reports. 

Memorial service for coronavirus victims to be held this morning

A memorial to honour the Austrian victims of the corona pandemic will be held later today. Austria’s Federal President Van der Bellen, Chancellor Sebastian Kurz, Vice Chancellor Werner Kogler and others will gather at 10am in Austria’s Aula der Wissenschaft science building.

Vienna starts vaccinating high risk patients in all age groups

Vienna has begun to vaccinate its high-risk patients.

Now everyone born up to 2005 can register for a jab. So far, around 129,600 high-risk patients have registered with the Vienna Vaccination Service – including people suffering from asthma or diabetes.

Of those, 64,744 people have already been vaccinated. All people in this group should receive their first injection in April, Der Standard newspaper reports.

 

Posted by Stadt Wien on Thursday, April 15, 2021

Third wave has passed its peak

As The Local reported yesterday  the third wave of the corona pandemic has passed its peak in Austria according to the Covid forecast consortium the Wiener Zeitung  newspaper reports. However, even if the number of new infections continues to decline, this does not mean rapid relief for intensive care units in hospitals.

READ MORE: Why experts believe Austria’s third wave of Covid ‘has peaked’

Optimism ‘has evaporated’ in Austrian companies, says Deloitte survey

Optimism has evaporated in Austrian companies, according to CEO of Deloitte Austria Harald Breit, the Wiener Zietung newspaper reports. Deloitte surveyed 250 Austrian top executives, but only 27 percent now  believe that Austria’s recovery will be “good” or “very good” in comparison to other European countries.

In summer 2020 it was 64 percent. The executives see an urgent need for action in digitisation in the health sector, public administration and education. 

Austria pays most corona aid

More than €34.6 billion euros in corona aid has been promised or paid out by the federal government so far according to Finance Minister Gernot Blümel, the Wiener Zeitung newspaper reports Significantly more aid per capita was paid out in Austria than in other EU countries, according to a study by economic institute EcoAustria. In 2020 and 2021 together, Austria used more than 10 percent of GDP into COVID relief measures. The EU average is 5.5 percent  of GDP, it reports. 

Spying allegations rejected by OMV

The board of the Austrian state-owned oil, gas and chemical company OMV has met and produced a report on allegations it used international espionage companies to monitor environmental organisations Greenpeace and Fridays for Future.

OMV admitted using companies to get information about activities of environmental NGOs, but rejects the spying allegations, saying it was only trying to protect its critical infrastructure Der Standard newspaper reports.

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ECONOMY

Key divisions of Austria’s property giant Signa file for insolvency

The two most important property divisions of real estate giant Signa -- whose vast portfolio includes New York's iconic Chrysler building -- are filing for insolvency, the company announced Thursday.

Key divisions of Austria's property giant Signa file for insolvency

The filings mark the latest troubling developments at Signa, exacerbating the spectacular downfall of self-made Austrian tycoon Rene Benko.

Benko — one of Austria’s richest men — founded Signa in 2000 and grew it into a property and retail conglomerate. But as the sector is hit by higher borrowing costs and rising building material prices, a growing number of developers are filing for bankruptcy.

The Signa Prime Selection division — which includes properties such as the Berlin shopping gallery KaDeWe — on Thursday initiated self-administrated insolvency proceedings at Vienna’s commercial court, the company said.

A second subsidiary, Signa Development Selection, will also file Friday to restructure under self-administration, it said.

BACKGROUND: Austria property giant Signa to file for insolvency

Credit rating agency Fitch had already downgraded the Signa Development unit earlier this year.

“It is well known that external factors have had a negative impact on business development in the real estate sector in recent months,” the statement said. “Despite considerable efforts in recent weeks, the necessary liquidity for an out-of-court restructuring could not be secured to a sufficient extent, so that SIGNA Prime Selection AG has applied for restructuring proceedings with self-administration,” it added.

At the end of November, Signa’s holding company filed for insolvency after Benko announced he was handing over the chairmanship of the company’s advisory board to a German restructuring expert.

According to the company’s website, the assets of Signa Prime Selection are valued at €20.4 billion. Prime Development owns assets worth €4.6 billion, the website states.

Several Signa projects, including the construction of a landmark high-rise in the German city of Hamburg, have ground to a halt. Recently, Signa has been looking at selling its partial ownership of the
Chrysler building.

READ ALSO: Can foreigners buy property in Austria?

The leading German department store chain Galeria Karstadt Kaufhof, which Signa purchased in 2019, filed for bankruptcy in 2020 amid the coronavirus pandemic, and the chain decided to close 52 stores at the start of the year.

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