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ECONOMY

Five reasons to be optimistic about life in Austria in 2023

Even though the cost of living will continue to be at a high level in Austria, there are many reasons to be positive about life in the country in 2023.

Published: 4 January 2023 10:33 CET
Updated: 11 January 2023 13:14 CET
Five reasons to be optimistic about life in Austria in 2023
People standing and sitting in a park in the late summer. (Photo by Nico Ruge on Unsplash)

It may seem like people in Austria (and much of the world) have been hit with hard news non-stop for the past few years. From the coronavirus pandemic to the invasion of Ukraine and following the energy crisis, there has been barely any respite.

A 2022 research showed that a large part of the Austrian population looked to the future with scepticism and pessimism, especially when it comes to the economic situation.

Almost half of the Austrian population (47 percent) eligible to vote (Austrian citizens older than 16 years old) said they are looking to the near future with scepticism and pessimism. Only 23 percent expressed optimism and confidence.

READ ALSO: Five of the biggest challenges facing Austria right now

They were even gloomier when it came to evaluating the economic situation, as 62 percent said they expect it to deteriorate.

But there are a few reasons to be optimistic about life in Austria in 2023

The energy crisis has been contained

Firstly, while many feared that decreasing influx of Russian gas to Europe could lead to a significant shortage – with some predicting the continent would “freeze” – that did not come to place. 

Austria, in particular, has been highly effective in cutting its ties to Russian energy imports and is no longer heavily dependent on Russian gas. 

READ MORE: How expensive are gas and electricity in Austria right now?

Before the war in Ukraine, it sourced around 80 percent of all gas from Russia and had gas reserve tanks at only approximately 12 percent capacity. However, by September, Austria had already reduced imports of Russian gas to 21 percent and had its gas tanks well stocked at just over 95 percent. Moreover, with the current mild winter in the Alpine country, storage is likely to maintain high levels.

Of course, the country was able to purchase gas from other sources, but the deals, some of which expire before the next winter season, will need to be renewed and renegotiated. Other solutions, including expanding renewable energy infrastructure, are also long-term and results won’t be seen until the coming years.

Still, compared to the alarm many felt almost one year ago, the energy situation in Austria is definitely something to be optimistic about.

READ ALSO: ENERGY: How Austria has drastically reduced imports of Russian gas

Covid-19 becomes endemic

After almost three years of restrictions, fear and thousands of deaths, the coronavirus pandemic seems to have reached a new endemic phase. One in which people can resume their everyday lives, take their yearly vaccinations and be more careful around those who are more vulnerable.

In 2023, Covid-19 looks to become endemic, like the flu, and we likely won’t require major restrictions such as lockdowns and contact tracing. The virus will continue to circulate, but hygiene measures and vaccination will prevent most serious cases, 

READ ALSO: Colds and flu: What to do and say if you get sick in Austria

Austrian experts such as virologist Dorothee von Laer of the Medical University of Innsbruck have agreed that the pandemic is “over”. Von Laer said the coronavirus has now joined the ranks of other colds or viral infections, according to Austrian media.

She cited the broad basic immunity that now exists in the population, which means that far fewer people fall ill, and if they do get sick, it is not as severe as in earlier times.

READ ALSO: Long Covid: What support is available in Austria?

Pictured is somebody getting cash out of their wallet.

Pictured is somebody getting cash out of their wallet. Photo by Emil Kalibradov on Unsplash

Inflation stabilising and cushioning measures

Even though it is still at a high level, the inflation rate seems to have stabilised in Austria. After reaching double digits in 2022, the consumer price index could fall back to 6.7 percent in 2023 and 3.3 percent in 2024, according to an EU Commission estimate.

Austria’s Institute for economic research WIFO has a similar prediction: the economists said in 2023, inflation should slow to 6.5 percent as energy prices also fall. 

Several government measures aimed at dampening the effects of the rising cost of living will also be in place in 2023, including one-off bonus payments and tax changes. In addition, the tax reform, electricity price brake, government aid and more mean households will be able to save thousands of euros in 2023.

READ ALSO: Tax cuts and bonus payments: Austria’s financial measures that will benefit people in 2023

Employment market

“The situation on the labour market remains favourable and is expected to deteriorate only temporarily as a result of the economic downturn”, economist Stefan Ederer at WIFO wrote.

After a significant decline in 2022 (6.3 percent), the unemployment rate will rise slightly to 6.5 percent in 2023 due to weaker employment dynamics and fall back to 6.2 percent in 2024.

Many high-paying job positions are still open as Austria faces a labour shortage in areas including IT, healthcare and education. Federal healthcare reform will also raise working conditions (and salaries) in the sector, trying to attract the thousands of health workers Austria needs. 

READ ALSO: Health care reform: Austria to give €2,000 bonus to nursing staff

Concerts, events, travel and more

New Year’s Eve 2022 marked the return of one of the many events cancelled during the pandemic years, the Silvesterpfad, with hundreds of thousands of people in Vienna’s city centre. The crowds ushered the new year and celebrated that last mark of the “end of the pandemic’. 

Now, 2023 is set to be the first year since 2023 with little to no restrictions when your summer travel (and if you are going to Croatia, more good news as the Balcan country joins the Schengen area) is safer than ever and plans can again be made perhaps even without a cancellation policy. 

Austria has countless events to make for a very enjoyable and optimistic 2023, from film festivals, the Donauinselfest, the Salzburg Festival, Vienna Pride or just plain swimming in lakes and rivers – or visiting museums without fear of being indoors.

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LIVING IN AUSTRIA

‘Haushaltsversicherung’: How does Austria’s home insurance work?

'Haushaltsversicherung' is one of Austria's most popular types of insurance. It is not mandatory, but it is certainly worth evaluating, especially as it comes with many possible add-ons.

Published: 2 May 2024 15:22 CEST
'Haushaltsversicherung': How does Austria's home insurance work?

Austrians are certainly obsessed with insurance coverage, and one of the most popular and common ones is known as the “Haushaltsversicherung”—if you don’t have it already, you have certainly heard of it. Here’s what you need to know about household insurance.

Firstly, this insurance covers damages to “all movable objects within your own four walls,” as Austria’s Chamber of Labour (AK) explains. This includes furniture, carpets, and electrical appliances. It would also cover damages caused by fire, storms, water, burglary, and glass breakage. 

Certain types of insurance, such as private liability insurance or mandatory dog liability insurance, are almost always combined with household insurance—another reason why the Haushaltsversicherung is so popular in Austria.

READ ALSO: What kind of insurance do I need to have in Austria?

However, there are enormous differences in premiums and benefits, so experts suggest you check precisely what you need before taking out insurance. The AK also says you should talk to an insurance advisor to learn more about your specific case and needs, particularly if you have any valuables in your home. 

Additionally, they said: “It makes sense to check your policy every few years to ensure that you are properly insured. This guarantees that the sums insured and the risks included are up-to-date and sufficient”.

What should I keep an eye on when reviewing policies?

Of course, different companies have their own offers, and they are often highly customisable to fit your apartment and lifestyle—some things you need to be aware of, though.

Certain policies are tied to the size of your apartment, while others will have a lump sum regardless of the size of your place. Policies also usually differ depending on whether you live in an apartment or a house. 

While most insurance will cover glass breakage (such as when a hail storm breaks your window, for example), some might have it as an add-on (wahlweise mit Glasbruch). 

You may also add other types of insurance to your household insurance, the most common being mandatory dog liability insurance (Hunde-Haftpflicht), legal insurance (Straf-Rechtsschutz), and sports insurance.

READ ALSO: Should I take out insurance before skiing in Austria?

It’s worth it to read each policy, but you should know some common clauses beforehand. For example, insurance often won’t cover burglary costs if your house has not been properly secured and locked. This might seem obvious, but since door knobs don’t open from the outside without the key, people often leave their homes, especially for short errands, and don’t lock the doors all the way. Insurance and safety experts recommend you get in the habit of locking your home doors.

It’s also important to check if your insurance will pay you “Neuwert” or “Zeitwert” in case of damage. 

A Neuwert means the insurance will pay for a replacement object, regardless of how old the stolen or broken one was. However, many insurance policies still contain the so-called “Zeitwert”, something like “current value”, so you wouldn’t receive an amount that could pay for a new product. Instead, a loss of value of around 10 percent per year could be expected for most objects.

What should I do if there is damage to my home?

If you see any damage to your home from burglary, accident or other types, you need to notify your insurer immediately and report the damage you have suffered. 

The insurance conditions usually stipulate a maximum period of three days for reporting a claim in property insurance. The Chamber of Labour also recommends that you send a written notification of the claim (preferably by registered mail, they add).

“Make a list of all items that have been destroyed or lost and enclose it with your report to both the insurer and the security authorities”, they said. And, of course, in the event of fire burglary or robbery, always inform the fire department or police authorities.

READ ALSO: EXPLAINED: The Austrian insurance for if you get sued – or want to sue someone

How long does the insurance last, and how much does it cost?

The insurance term is usually specified in the counteract. In general, though, you can terminate it after the third year with one month’s notice if the contract has not already expired.

If you move house or move abroad, you can terminate your household insurance contract. You can cancel the insurance the day before the move begins (preferably by registered letter).

If you do not exercise your right of termination, the insurance will remain valid during the move and in the new home.

Regarding prices, they can be as low as a few euros a month (such as insurance specifically tailored to students living in shared flats) to several hundred a month if you have a large place with plenty of valuables or include several add-ons. 

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