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Austria is gearing up for a general election this Sunday, with the next government facing economic challenges such as a contracting economy and above-average Inflation within the EU.

Here is a breakdown of what the main political parties are proposing in terms of economic policies:

FREEDOM PARTY – FPO
Leading the opinion polls, the far-right FPO is advocating for deregulation and lower taxes. Their proposals include:
– Reducing corporation tax for small businesses from 23% to 10%
– Eliminating a carbon emissions tax introduced in 2022
– Implementing price controls on essential items during times of severe Inflation
– Expanding renewable energy while acknowledging the continued need for Russian gas
– Increasing annual pension increments, particularly for small and minimum state pensions

AUSTRIAN PEOPLE’S PARTY – OVP
Following closely behind the FPO in polls, the ruling conservatives are also focused on lower taxes and reduced regulation. Their agenda includes:
– Gradually lowering employment taxes
– Ensuring that corporation tax is at least 0.5% lower than the EU average
– Decreasing the tax burden as a percentage of GDP to 40%
– Introducing automatic expiry dates on new regulations
– Implementing a policy to remove two regulations for every new one introduced

SOCIAL DEMOCRATS – SPO
Polling at around 20%, the leftist SPO aims to shift the tax burden from income to assets. Their proposals consist of:
– Reversing the reduction in corporation tax to bring it back to 25%
– Imposing special levies on energy companies and banks that have benefited from rising energy prices
– Transitioning the state holding company OBAG to support renewable energy investments
– Reducing dependence on Russian gas
– Trialing a four-day work week in collaboration with companies and unions

NEW AUSTRIA – NEOS
The liberal party, polling at about 10%, is advocating for:
– Lowering employment taxes to increase take-home pay for workers
– Abolishing capital gains tax on long-term stock market investments
– Supporting vocational education and apprenticeships
– Transitioning away from fossil fuels and Russian gas towards renewable energy sources
– Increasing the retirement age to account for longer life expectancy

THE GREENS
At 8% in the polls and part of the coalition since 2020, the Greens are promoting an active industrial policy and higher taxation on wealth. Their agenda includes:
– Reducing subsidies for harmful businesses to fund green infrastructure
– Expanding carbon emission taxes and climate bonuses
– Removing licensing requirements for certain professions
– Committing to sourcing all power from renewables by 2030
– Gradually reducing the work week to 35 hours once labor shortages are addressed.

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