Country Risk

New Austrian government increases likelihood for disputes with EU while businesses can expect deregulation and labour-market reforms

18 December 2017


On 16 December, incoming Chancellor Sebastian Kurz’s centre-right Austrian People’s Party (Österreichische Volkspartei: ÖVP) finalised a deal with the right-wing, anti-immigration Austrian Freedom Party (Freiheitliche Partei Österreichs: FPÖ) to form a coalition government.

The ÖVP-FPÖ alliance means a move further to the political right, which will be reflected in cuts to benefits for migrants, a focus on fighting illegal immigration, and longer prison sentences for violent crime. In addition, it is likely that the government will focus on deregulation and efforts to introduce a higher degree of flexibility into Austrian labour markets. Kurz has also emphasised that his government will follow a pro-European Union course.

Want to read more? For analysis on this article and access to all our insight content, please enquire about our subscription options at

(130 of 342 words)