Whether in transport, spatial planning or residential construction – according to Badelt, holistic strategies for a turnaround in energy, resources and climate must move into the centre of a sustainable and future-oriented economic policy. In this sense, environmentally harmful subsidies should be reduced as far as possible, recycling-oriented production cycles accelerated and the "long horizon" included in today's investment decisions.
In addition to the environment, European policy in Austria is not accorded the status it deserves. Essential economic issues such as labour migration and intra-European wage differentials should finally be discussed constructively throughout Europe. Austria should provide the impetus for this in Europe.
After the Austrian EU Council Presidency was praised for its constructive role in the Brexit talks, the federal government should maintain this positive mediating function in the negotiations after a possible Brexit. "The task will be to set initiatives in Europe very quickly after a Brexit decision." As a bridge-builder across the English Channel, Austria could, after the completed divorce, support continued close cooperation with the British in terms of free trade and good European neighbourhood.
"In tax policy, too, one must think ahead and steer in the long term," said Badelt. Many issues would have to be removed from the taboo for this. Although the federal government has taken a positive basic direction with its tax reform plans, necessary system changes are too timid – at least according to current knowledge: "The tax system needs to be further ecologised and the labour factor needs to be reduced even more."
The unemployment rate will continue to fall in 2019 – but will rise slightly again in 2020. An unemployment rate of 7.3 percent is forecast in each case. The federal government should therefore prepare a more active labour market policy now and take budgetary precautionary measures. In the medium term, solutions must above all be found for the acute shortage of skilled workers. Here, Badelt emphasised women's employment, which is unfortunately "still made more difficult". Childcare, however, could help women increase their potential workforce. Young migrants, too, are currently being given away important potential for the labour market.
Finally, Badelt also addressed the "heated debate" on the reform of the minimum benefit system. Unfortunately, polemics are all too often in the foreground. Here, too, long-term issues were not addressed. There were more and more people who could not make a living from earned income or who earned less than transfer income. This, too, shows that the net burden on income in the lower range would have to be reduced more, Badelt said. In principle, it must be determined which lower income limit in Austria should be regarded as "humane" – "irrespective of citizenship or language skills", said the WIFO Director.
