City of Vienna wants own climate protection law

The city of Vienna wants to be the first federal state in Austria to pass its own climate protection law this year, broadcaster ORF said on Sunday.

“Since the federal government is unable to do this, we will introduce our own Vienna climate protection law,” said Mayor Michael Ludwig (SPÖ) in an interview with MeinBezirk newspaper.

The plan is for the city to be CO2-neutral by 2040.

The law is not only necessary, but also another “important step towards even more climate protection,” said Ludwig, adding that achieving climate targets was “a major challenge,” making energy generation a key issue for Vienna.

Chamber of Labour boss in favour of “open discussion” about wealth taxes

Tyrolean Chamber of Labour President Erwin Zangerl (ÖVP/Austrian People’s Party) is – unlike his centre-right party – more open to wealth taxes, ORF reported, citing the Austrian Press Agency APA.

The head of the organisation, which champions the interests of Austrian employees and consumers, told the APA that he was in favour of an “open and honest discussion” on the topic.

At the moment, “people who are probably not affected at all” feel affected, he said, explaining that the population needed to understand exactly who the tax would impact.

However, he was not convinced that the benefit of wealth taxes would outweigh the bureaucratic effort involved in setting them up. 

Other ÖVP grandees, in particular Chancellor Karl Nehammer, have categorically rejected a wealth tax. 

German language skills and employment up among displaced Ukrainians

A recent survey shows that the majority of displaced Ukrainians in Austria do not plan to return home, with only three percent having concrete plans to do so, ORF reported. In contrast, 54.5 percent of respondents stated they would rather not or definitely not return to Ukraine. This marks a significant decline in those considering returning, down from 13 percent in 2023 and 30 percent in 2022.

The survey, commissioned by the Austrian Integration Fund (ÖIF), interviewed 1,358 displaced Ukrainians aged 18 to 55. According to project manager Sonja Dörfler-Bolt, many of these individuals are likely to remain in Austria due to both the war and their adaptability.

German language skills have notably improved, particularly among women, with 72.4 percent now speaking the language, compared to just 17 percent in 2022. Employment rates among women have also risen, with 42.5 percent now working, up from less than 10 percent in 2022.

Despite these positive signs, hurdles remain, including limited access to higher welfare benefits. Migration expert Judith Kohlenberger noted that while displaced Ukrainians receive temporary protection, they do not qualify for official asylum status. This could create challenges for those unable to meet the high criteria required for permanent residence, particularly if temporary protection is not extended beyond March 2026.

Metalworking sector avoids wage negotiations but faces job cuts

The metalworking industry in Austria is set to avoid tough wage negotiations this year, thanks to a two-year agreement. However, job losses continue to rise, with 8,500 positions expected to be cut by the end of 2024. Half of the companies in the sector are now operating at a loss, according to Christian Knill, Chairman of the Metal Technology Industry. Production fell by 10 percent in the first half of 2024, and orders, already down 18 percent last year, continue to decline.

Knill attributes the crisis in part to the struggles of German car manufacturers, a key market for Austrian suppliers. As a result, businesses have been forced to cut personnel, with 2,000 employees and 2,000 temporary workers already losing their jobs this year. Companies abroad have cut over 5,000 jobs.

Rising wage costs are also a major concern, with Austria seeing an 8.9 percent wage increase last year, compared to 2.9 percent in Germany. The industry is pushing for reduced bureaucracy, lower non-wage labour costs, and an increase in investment allowances. Despite slight signs of recovery, 80 percent of companies remain pessimistic about the rest of the year, predicting a further 9 percent drop in production.

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