OECD Economic Surveys: Austria 2011

The Austrian economy has weathered the crisis well on the back of an export-led recovery. The authorities should seize the opportunity to strengthen reforms and maintain high growth, which in the past has been considerably boosted by European integration effects which are likely to fade out in the future.

In this context recommendations from earlier OECD Economic Surveys remain relevant:
• All subsidised avenues into early retirement should be eliminated.
• The work incentives of low-skilled workers should be strengthened and their cost of employment reduced. Successful up-skilling programmes should be further developed.
• Early child care infrastructure and full-day schooling should be expanded, with recent government initiatives going in the right direction.
• Education reforms should continue, to overcome the excessively early streaming of students, and to permit universities to select students and charge tuition fees, accompanied by a comprehensive grant and income-contingent loan system to avoid socioeconomic segregation.
• Competition should be further enhanced in network services such as rail, postal services and electricity, as well as in liberal professions.

Table of contents
Executive summary
Assessment and recommendations
Bibliography
Annex A1
Annex A2. Progress in structural reform
Annex A3. Selected structural reform priorities of the Austrian government: road map 2011-13
Chapter 1. Public sector inefficiencies have become less affordable
Public finances after the crisis
Public spending needs to be substantially restrained
Towards a more growth-friendly tax structure
Notes
Bibliography
Chapter 2. Reforming a highly regarded but costly health system
Introduction
The health system performs well but is excessively fragmented and costly
Important fiscal challenges lie ahead
The efficiency of the system can be significantly improved, notably in the hospital sector
Health care policy should also be supported by improvements in lifestyles
Policy recommendations
Notes
Bibliography
Annex 2.A1. The future of the health system in the national policy agenda
Annex 2.A2. Austria’s progress with e-health technologies
Annex 2.A3. Some challenges with the national check-up programme
Boxes
1. Summary of fiscal policy recommendations
2. Summary of health policy recommendations
A1.1. Cross-border prudential policy
A1.2. The relationship between unemployment and GDP in Austria
1.1. Off-budget operations of the Austrian government
1.2. Transparency database
1.3. Main taxes on labour income
1.4. Social benefits and effective taxation of labour income
1.5. Fiscal policy recommendations
2.1. Austria’s fragmented health institutions
2.2. Private payments do not necessarily undermine equity of access
2.3. The 2009 saving package
2.4. The Austrian DRG system: promises and setbacks
2.5. Transition to integrated care
2.6. Open contracting and payment for integrated care: lessons from other OECD countries
2.7. Policy recommendations