03.06.2024

What Are the Economic Benefits of the EU for Austria?

Brief Analysis by Gabriel Felbermayr and Inga Heiland on a Possible "Öxit"
How would prosperity in Austria change if the European Union suddenly ceased to exist? The simulation results show: after full adjustment to the new framework conditions, the real value of gross domestic product (in 2022 prices) would be between 24 and 47 billion € lower.

In the event of a surprise Öxit, the damage would probably be twice as high in the short term. Calculated per capita, the economic losses would be between 2,735 € and 5,190 € (90 percent confidence interval, mean value 3,860 €), putting Austria in 6th place out of 27 in the EU ranking, with the first three places going to very small EU member states. The Austrian net contribution, which was between 113 € and 184 € per capita in 2022, would have to be deducted from these gross effects.

The analysis can be validated using the actual effects of the UK's withdrawal from the EU. However, it only identifies lower limits for the true costs because the benefits of EU integration on innovation, foreign and security policy or the individual freedom of citizens cannot be quantified.

Although EU membership is an excellent deal for Austria, major internal barriers remain in the single market. Removing these barriers, for example by creating a single market for energy, a capital markets union or a European infrastructure initiative, could significantly increase the economic benefits of the EU for Austria and boost much-needed economic growth.

Study
03.06.2024
Brief Analysis on a Possible "Öxit"
Finalization: June 2024
Austria's GDP Falls by 0.23 Percent in the Short-term and by 0.33 Percent in the Medium- to Long-term
04.04.2025
WIFO and Kiel Institute Publish Policy Brief on US Trade Policy after 2024
03.11.2024
Register now for the book presentation by Gabriel Felbermayr and Martin Braml on 11 October
26.09.2024
Elisabeth Christen Spoke at the Expert Talks by Austrian Standards about the Global Election Year 2024
19.06.2024
Video: European Election 2024 – Talk with Leading Candidates and Impulse from WIFO Director Gabriel Felbermayr
04.06.2024
Brief Analysis by Gabriel Felbermayr and Inga Heiland on a Possible "Öxit"
03.06.2024
WIFO Research Brief: A New EU Sanction Mechanism Aimed at Countering Economic Coercion from Third Countries
17.04.2024
WIFO Director Gabriel Felbermayr's Plea for a Future-proof Europe
29.01.2024