Austria’s Economic Outlook: Brunner Confirms No Plans for ‘Excess Profit Tax’ on Banks

Vienna, Austria – Austrian Finance Minister Magnus Brunner has ruled out a “windfall profits tax” on banks, saying that it would be counterproductive and would discourage investment.

Brunner’s comments come in response to calls from some politicians and economists for the government to tax the profits of banks that have benefited from the rising interest rates. However, Brunner argued that such a tax would be unfair and would discourage banks from lending money to businesses and households.

“We don’t want to discourage banks from lending money,” Brunner said in an interview with the Austrian newspaper Die Presse. “We need banks to lend money so that the economy can grow.”

Brunner also argued that a “windfall profits tax” would be difficult to implement and would be open to legal challenges. He said that the government would rather focus on other measures to reduce the cost of living, such as cutting taxes and energy prices.

“We need to take measures that are effective and that will actually help people,” Brunner said. “A ‘windfall profits tax’ would not be effective and it would be open to legal challenges.”

The idea of a “windfall profits tax” on banks has been gaining traction in Europe in recent months. In France, the government has proposed a tax on the profits of energy companies that have benefited from the rising energy prices. And in Italy, the government has said that it is considering a tax on the profits of banks.

However, Brunner’s comments suggest that Austria is unlikely to follow suit. The Austrian government is keen to avoid measures that would discourage investment and growth. And Brunner has argued that there are better ways to reduce the cost of living for Austrians.