We hear what the economy says

“World Champion Austria” hears what the economy says

The leaders of the Senate of Economy Austria are discussing the business location Austria.

By SYLVIA FOISSY and ANDREAS BRUNNER

The Senate of Economy Austria is a non-partisan business organisation and has been a driving force in shaping an eco-social and sustainable economy and society since its establishment in 2006. CEO Hans Harrer discussed Austria as a business location with President Erhard Busek and Vice President Benita Ferrero-Waldner. Harrer: I am glad you took the time to exchange views on the business location Austria. In my opinion, Austria is an excellent location even just for the cultural quality of its society. The social security signifies Austria and we can proudly say that Austria is a safe haven for businesses and staff of different cultures. Austria has therefore the perfect foundations for further developing a prosperous business location.

Busek: It is a remarkable achievement of the Austrian economy to have invested strongly into Central, Eastern and South-East Europe. Our country’s presence is felt stronger through the economy than through politics.

Harrer: There is still need to catch-up in several areas in order to become a world-class business location. We need more courage and in particular more freedom for innovations. We will only be able to master our future if we meet the challenges of politics, society and economy with innovations.

Busek: Catching-up needs to be done mainly when it comes to trying to be part of infrastructure projects financed with EU monies. Apart from that, the sky is the limit when trying to show more commitment. Particularly with regards to the current Covid pandemic it is necessary to do more in this area.

Harrer: We also need more self-esteem within the EU in order to highlight our achievements. Which events do you consider significant when you think of Austria’s membership in the European Union?

Busek: Joining the European Union and the fall of the Iron Curtain as well as the events in South-East Europe were significant, I would say. I had the opportunity to influence and help shape these things,

e.g. with the Stability Pact for South Eastern Europe or the enlargement of the European Union. I am positively surprised that everything went even better than I thought. There is still much more to gain for Austrians.

Harrer: Covid-19 is a major challenge for the European Union. The next few years will show whether the Covid crisis has changed society in terms of personal interaction, ecological responsibility for the future, education, health and economic structures.

Busek: The Covid crisis has led to a number of necessities that we have to face. One is surely the question of which jobs actually do have a future. We also have to say goodbye to things that sound nice but cannot be implemented in reality.

Harrer: Exactly. We need to subject our thinking and our actions to a principle in which we do not speak only in empty phrases with words such as “should” and “could”. Doing it is the decisive way forward for every individual.

Busek: Just to give one example: Vienna as an international hub. Austrian Airlines paid a high price for us having the wrong strategy. We are depending on Lufthansa, which has different priorities from us under the influence of the German government. It would have been better if we had established a regional airline with other countries that serves the region and then connects internationally, e.g. with Emirates or Turkish Airlines. That would be far more realistic and future-oriented.

Ferrero-Waldner: Let’s stay with the Covid pandemic, for a moment. It has to be said that the EU has hardly any competences when it comes to issues of health. That’s why some member states blocked common support measures as suggested by the European Commission. I hope that all EU members have learned from this crisis and will pull together in future measures. We need more Europe, not less.

Harrer: We need Europe as a community and as an alliance more than ever. We must not go back to nationalistic structures because nationalistic politics are unable to solve challenges of the future alone.

Ferrero-Waldner: To me, multilateralism is indispensable in our globalised world. The prerequisite for functioning organisations is to put leaders in leading positions. Furthermore, it is often particular interests of a state that prevent quick and far-reaching decisions.

Busek: In reality, the Austrian legislation and administration needs to account for European and global aspects. National tasks will continue to exist in future but should deal more with regional questions. We need to find international solutions in diplomacy one again. We need to realise that the current organisation of the United Nations does not account for the current situation. We need to ensure the effectiveness of the UN the same way as on a European level.

Photo: Senat der Wirtschaft

Erhard Busek, President of the Senate of Economy Austria

Ferrero-Waldner: Globally, we can see that China is pushing harder into the gap that the United States have left by withdrawing from international cooperation, even before the Covid crisis struck. The pandemic actually reinforced this development. China is expanding its soft power in a very clever and consistent way.

I believe that we will have a multi-polar world in the future. And the EU needs to take up a strong position in this multi-polar world. Unfortunately, the EU’s slow movement, which is sometimes caused by its own member states, is abused by some populist parties who turn it into anti-EU rhetoric. The EU needs to clearly communicate the huge financial support it provides.

Harrer: One thing that the United Nations mastered outstandingly is drafting the Sustainable Development Goals. The 17 SDG goals for sustainable development are a masterpiece for our compass of social order mechanisms. They are a political declaration of the United Nations that serve to secure a sustainable development on an economic, social and ecological level all around the world. They open up space to take autonomous and not heteronomous actions.

In the last 15 years when the maxim was “faster, bigger and further”, economic and social change came about in a frightening pace. I’ve demanded for years to bring economy and society into balance in order to make society ready for the future. Therefore, the SDGs are also a guideline for the Senate’s initiatives to implement an eco-social market economy. there is globalisation, which will stay despite the Covid crisis, but on the other hand we are not moving forward with legal policies. This issue has failed so far on a European level.

Harrer: Something that SDGs do not reflect are practised values, which are the basis for all actions. To be humble but still be brave enough to act. The Covid crisis demanded this from us. The coronavirus has changed the world.

Busek: That’s true. The Covid crisis has changed the world, of course, because globalisation has become visible in an unpleasant way. But this is only the beginning. I believe that change will come from another direction too: In future, some investments will remain beneath today’s levels. This will apply to tourism and maybe even to a certain type of affluent economy.

We have been warned that we also need to make savings. We saw this clearly during economic crises. When it comes to education we need to think where we actually need a workforce and which education it needs. In the health sector we need to realise that there are global phenomena. And the economy needs to take these factors into account and to create the necessary ties. Ecology is without a doubt an important issue but we need to approach it in a more practical and realistic way. There are too many daydreams that often have little relation to reality. But this is a discussion we will always have.

Harrer: It is therefore more important than ever to develop an eco-social transformation for a modern society that is not connected to any party politics in order to allow for a neutral view of the necessity for change and its implementation. This is one of the Senate’s main tasks and we will continue to fight for it tirelessly. ◆

Photo: Senat der Wirtschaft

Benita Ferrero-Waldner, Vice President of the Senate of Economy Austria

The Senate of Economy

The Senate of Economy is a value-based community and strives for the balance of economic, ecologic and social goals in our economy and our society.

Being a non-affiliated business organisation, the Senate ensures a knowledge transfer to political decision-makers in order to improve the business framework. Free from any party politics and particular interests and being financially independent, the Senate aims for the best benefit of its members and is a driving force in shaping an eco-social and sustainable economy and society.

The Senate’s work is divided into the areas economy, ecology, education and health.

All members of the Senate are very aware of their responsibility towards state and society and act hand in hand for an eco-social orientation of the economy and of society. Among the Senators there are CEOs of major businesses and international corporations, owners and managing directors of medium-sized enterprises, representatives from politics, authorities, diplomacy, associations, sports and culture. Going by the motto “Economy – That is all of us!”, they are brainstorming and looking for innovative solutions together with hundreds of companies from Austria, its neighbouring countries and the entire Danube region. Politicians are considered partners for dialogue. The Senate fosters partnerships and collaborations with other renowned institutions from economy and science, who are on the same page and who want to the exchange their knowledge of strategies and ways to master ongoing challenges.

The Senate holds talks with political decision-makers, workgroups and think tank circles, sets practical initiatives and implements its own projects, hosts symposiums, congresses and regional business talks, and publishes papers in the media. Member companies can benefit from international networking thanks to the Senate’s sister organisations all over Europe.

The Senate of Economy Austria was established in 2006. Erhard Busek has held the presidency since then.