Austria is bracing for a record surge in bankruptcies, with over 7,000 companies expected to fold by the end of 2024—an average of 22 closures per day in a nation of just 10 million.
This alarming trend would mark the highest number of corporate insolvencies in 15 years, according to Creditreform, a creditor protection association.
Key factors behind the crisis include skyrocketing energy costs, waning exports, shrinking domestic consumption, and burdensome regulations. “High unit labor costs, soaring material and energy prices, and excessive red tape are making it increasingly hard for Austrian businesses to thrive,” said Creditreform official Gerhard Weinhofer.
The Freedom Party of Austria (FPÖ), which won recent elections but was sidelined by a coalition of rival parties, blames the current administration for the economic downturn. FPÖ economic spokesperson Axel Kassegger accused Chancellor Karl Nehammer’s government of creating a “unique economic policy mess” that has devastated Austria’s business landscape. He warned the incoming traffic-light coalition will likely exacerbate the issues, continuing what he calls a “left-wing anti-business course.”
Beyond bankruptcies, Austria is grappling with plant closures, job losses, and wage cuts. Energy costs remain a critical burden, further intensified by Russia’s complete cutoff of natural gas supplies. The FPÖ has advocated for peace talks with Russia to restore affordable energy, criticizing the government for failing to address rising electricity and gas prices effectively.
Kassegger emphasized the urgent need for reforms, including energy price relief and measures to support businesses and workers. “Our companies and citizens cannot bear these costs much longer. Time is running out,” he warned.
