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Austria’s Economic Chamber Faces Backlash Over Lavish Pay Hikes Amid Crisis

A €2 billion war chest didn’t stop Austria’s Economic Chamber from raising its own pay—by up to 60%. Now, even its constitutionally protected role is under fire.

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Austria’s Economic Chamber Faces Backlash Over Lavish Pay Hikes Amid Crisis

The Austrian Federal Economic Chamber has sparked controversy with recent pay hikes and increased allowances for its presidents, despite the ongoing economic crisis. The Chamber's defense of these decisions has drawn criticism, with some calling for constitutional change.

Four weeks ago, Harald Mahrer, president of the Chamber, stated that 'the state is too bloated', yet the Chamber has since approved substantial pay raises for its employees and increased monthly allowances for its presidents by up to 60 percent. The Chamber holds approximately two billion euros in reserves, raising questions about its financial management.

Austria, a republic known for its rigid 'formulas', has seen societal resistance to change. The constitutional change in 2008 that established compulsory membership in the Federal Economic Chamber, the Chamber of Labor, and the Chamber of Agriculture was meant to strengthen social partnership. However, some now argue that the 'hammock' provided by these chambers may need to become less comfortable to prompt necessary reforms.

The Federal Economic Chamber's recent wage increases and allowance hikes have fueled debate about its financial management and the need for constitutional change. With Austria's society often resistant to change, the future of these institutions remains a topic of discussion.

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