Austria's economic success to continue through social reforms: OECD

13:32, July 12, 2011      

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Austrian government should further reforms in social areas to continue its healthy economic performance, the Organization for Economic Cooperation and Development (OECD) said on Monday.

The OECD's economic survey of Austria 2011 was issued on Monday at the Federal Chancellery of Austria, which gives an overview of Austria's economic performance in the past 18 months together with recommendation on the country's future development.

According to the report, Austria needs to cut its state debt from the current level of 73 percent to 60 percent of GDP in order to feed the aging population.

The OECD recommended Austrian government to introduce explicit debt targets and implement a new fiscal framework with medium-term spending ceilings at sub-federal levels.

To improve the Austrian health care system, resources should be optimized and enforced by the federal government with the support of provinces and health insurance companies.

The OECD also suggested reducing the taxation of labor force, especially of low-wage workers, and lowering down the real estate tax base appropriately.

All subsidized revenue into early retirement should be eliminated, while in terms of educational reform, premature streaming of students should be ended and universities should be allowed to select students and charge tuition, the OECD recommended.

Source: Xinhua
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