© europics.at

24. 11. 09. - 16:00

• more General News news
• RSS Feed General News

24. 11. 09. - 16:00

Pensions to be upped from next year

By Thomas Hochwarter

Pensions are to rise next year after pension union leaders and the SPÖ-ÖVP government agreed on a deal that will see a  1.5 per cent hike in pay-outs to pensioners next year, it was announced today (Tues).

Social Democratic (SPÖ) Chancellor and People’s Party (ÖVP) Finance Minister Josef Pröll said pensions lower than 2,466 Euros a month will be raised by 1.5 per cent from 2010.

The coalition leaders added they agreed with pensioners’ representatives on rate in a meeting which lasted less than 20 minutes.

Pension Union bosses Andreas Khol and Karl Blecha had campaigned in favour of a 1.9 or two per cent rise for weeks, claiming elderly people suffered most in the current economic crisis.

And earlier this month, state agency Statistik Austria announced pensioner households had to spend 0.6 per cent more in October than in the same month of 2008 while inflation rose just by 0.3 per cent year on year.

Chancellor Faymann and Finance Minister Pröll also said today they had agreed on an overall 35-million-Euro one-off payment for pensioners receiving less than 1,300 Euros a month. But they added details of the scheme still needed to be negotiated.

Pröll said he was satisfied with the achieved compromise, adding that – with 544 million Euros – costs would stay under 608 million Euros the government was prepared to spend.

He explained an increase taking into account the so-called Pensioners Prices Index would have cost the government 644 million Euros. This index focuses on prices of products and services pensioners especially buy or make use of, while it excludes other factors which influence the general inflation rate.

Social Democratic Pensioners’ Union head Karl Blecha called today’s agreement a "very satisfying result", adding he would continue his fight for a higher increase taking into consideration the Pensioners Prices Index.

Conservative Pensioners’ Union chief Andreas Khol said he was "able to back today’s agreement".

Pensioners’ Union bosses had faced harsh opposition from various critics over their calls for a rise of 1.9 to two per cent.

Industrial Association (IV) President Veit Sorger recently labelled the pensioners’ appeals "anti-social" and accused the elderly of "wanting to live off the younger generation".

ÖVP youth organisation chief Sebastian Kurz agreed with Sorger on the issue.

"The Austrian pensions system is about to crash into a wall, but what do pensioners union leaders do? They step on the gas," he said recently, adding a compensation of 1.5 to 1.6 per cent was "reasonable".

Austrian Times

Related articles: crisis

1. Negative Ebit for S&T after it makes corrections

   » Business 2010-03-19

   Vienna IT service provider S&T’s operating earnings dropped by 3.4 million Euros year on year in 2009, it said yesterday (Thurs).

2. BAWAG puts on brave face over 2009 losses

   » Business 2010-03-19

   Bank bosses at BAWAG PSK said it had losses of 22.2 million Euros in 2009 but added this was better than the previous year which saw losses of 547.5 million Euros.

3. Burton to move whole production to Austria

   » Business 2010-03-19

   Burton Snowboards announced it had plans to move its manufacturing facility and 43 jobs from the US to Austria.

4. Siemens Austria to lay off 500 to 600

   » Business 2010-03-19

   Siemens Austria said today (Fri) it would lay off 500 to 600 of 2,000 workers in software division SIS (IT solutions and services) in the near future.

5. RI's Croat subsidiary gets €30mn credit

   » Business 2010-03-19

   Raiffeisen International’s (RI) Croatian subsidiary Raiffeisenbank Austria d.d. received a 30-million-Euro credit by the German Investment and Development Society (DEG), it was announced.

6. BA net profit down 10 per cent

   » Business 2010-03-18

   Bosses at Bank Austria (BA) reported yesterday (Weds) that the bank had suffered a decline of 10 per cent in net profit year on year to 1.152 billion Euros in 2009.

7. WWII bombs call AC/DC gig into question

   » Panorama 2010-03-18

   A concert by Australian rock legends AC/DC at an Austrian airport could be cancelled because of unexploded WWII bombs.

8. WWII bombs call AC/DC gig into question

   » Travel 2010-03-18

   A concert by Australian rock legends AC/DC at an Austrian airport could be cancelled because of unexploded WWII bombs.

9. Transport key to climate protection, says traffic club

   » Business 2010-03-18

   The transport sector was key to increased climate protection, Austrian Traffic Club (VCÖ) expert Martin Blum said today (Thurs).

10. Car dealers spared by downturn

    » Business 2010-03-18

    The economic downturn has had minimal effect on Austrian car dealers as the number of newly registered cars soared last year.

Higher cigarette prices on tap
Austria Tabak reported today (Fri) that the price of its 35 brands of cigarettes would increase by 10 to 20 cents a pack at the end of March.

RI's Croat subsidiary gets €30mn credit
Raiffeisen International’s (RI) Croatian subsidiary Raiffeisenbank Austria d.d. received a 30-million-Euro credit by the German Investment and Development Society (DEG), it was announced.

Austrian Catholics turn on church
Austrian Roman Catholics are up in arms over sex scandals involving local priests and children with increasing numbers threatening to quit the church.

Wolford's earnings up in first three quarters
Vorarlberg textile firm Wolford reported today (Fri) that its earnings before interest and taxes (Ebit) had increased in the first three quarters of its 2009/2010 business year.

More foreign holidays planned this year
More Austrians are planning on holidays abroad this year after 2009 saw a drop in numbers, according to a study by public opinion research agency Karmasin.

Siemens Austria to lay off 500 to 600
Siemens Austria said today (Fri) it would lay off 500 to 600 of 2,000 workers in software division SIS (IT solutions and services) in the near future.

Graz police smash drug ring
An Iranian asylum seeker thought to be the boss of a drug-dealing gang has been arrested along with 11 cohorts, police said today (Fri).

Verbund could lose interest in French Poweo
Austrian energy provider Verbund’s 46 per cent interest in French electricity provider Poweo may become less valuable if the firm makes good on its threat to stop providing service to end customers.

Kasabian roll into Vienna
British indie rock giants Kasabian will return to Austria this summer, it has been revealed.

Paraglider crashes against bus
A 34-year-old paraglider escaped with bruises after smashing into a moving bus in Eben, Tyrol, yesterday (Thurs).