This article identifies some fundamental structural failings shown by the Austrian tax system that should be considered within the second phase of the tax reform envisaged for 2005. It focuses on corporate and personal income taxes as well as on property taxes.

As a result of the persistent weakness of domestic demand, manifest in the stagnation of retail trade sales and a decline in construction activity, the development in the export sector is of particular importance for the future course of the economy. According to the WIFO business survey, the...

The business cycle recovery in the USA will give early incentives to activity in Europe during the first half of 2001, leading to a marked revival of demand and output growth. Such expectations are confirmed by survey results and statistical data collected over the past few months. The WIFO...

In 2003, the economy will grow by only 0.7 percent. Under the current framework conditions of deficient overall demand in the euro area and a marked depreciation of the dollar vis-à-vis the euro, prospects of a cyclical rebound remain elusive even for 2004. With GDP growth projected at an...

Results from the WIFO business survey have shown a tentative upward trend since early this year, interrupted by occasional reversals. In the fourth quarter, confidence has improved in the manufacturing sector. All indicators currently point to a slow recovery, but not to a proper upturn.

For several months, business surveys have indicated a gradual but steady improvement of firms' expectations. Opinions on the current economic situation are also somewhat more upbeat in manufacturing and substantially more so in the construction industry. A turnaround on the labour market,...