“The positive aspects of qualified immigration to Austria”

Western European societies are ageing. This poses problems for the financing of social spending. Fewer and fewer people of working age are facing an increasing number of older people. As immigrants are on average younger than the resident population, immigration slows down the ageing of society. In a joint study by EcoAustria and IHS, we calculate that without immigration, the income tax rate in Austria would have to be 14 percentage points higher in 2060 to prevent the public deficit from increasing. This corresponds to a volume of around nine percent of GDP or six times this year's tax reform. Despite the considerable contribution, migration alone will not be able to compensate for the consequences of demographic ageing.

It should be noted that these results cannot be applied to the current influx of refugees, as it can be assumed that their integration will be more difficult than that of migrants from European countries. However, the study makes it clear that despite the major current challenges, the positive aspects of immigration should not be forgotten.

This commentary by DI Johannes Berger appeared in the business magazine of the Neue Kronen Zeitung on June 25, 2016.