COMMISSION STAFF WORKING DOCUMENT Analysis of the recovery and resilience plan for Austria Accompanying the document Proposal for a Council Implementing Decision on the approval of the assessment of the recovery and resilience plan for Austria
Date: 2021-06-21
Institutions: European Commission, Secretariat-General
Subjects: Austria, EU aid, coronavirus disease, economic and social cohesion, economic recovery, economic reform, epidemic, investment, structural adjustment

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 21.6.2021  SWD(2021) 160 final  COMMISSION STAFF WORKING DOCUMENT Analysis of the recovery and resilience plan for Austria Accompanying the document Proposal for a Council Implementing Decision  on the approval of the assessment of the recovery and resilience plan for Austria {COM(2021) 338 final}  
 
 
Table of contents 
1. Executive summary ............................................................................................................................. 2 

2. Recovery and resilience challenges: scene-setter ............................................................................... 5 

2.1 Macroeconomic outlook and developments since the 2020 country report ..................................... 6 

2.2  Challenges  related  to  sustainable  growth,  cohesion,  resilience  and  policies  for  the  next 
generation ................................................................................................................................................. 9 

2. 3 Challenges related to the green and digital transition .....................................................................13 

2.3.1 Green dimension .................................................................................................................. 13 

2.3.2 Digital dimension .................................................................................................................. 17 

3. Objectives, structure and governance of the plan ............................................................................ 21 

3.1 Overall strategy of the plan ...............................................................................................................21 

3.2 Implementation aspects of the plan .................................................................................................25 

4. Summary of the assessment of the plan ........................................................................................... 28 

4.1 Comprehensive and adequately balanced response to the economic and social situation .............28 

4.2 Link with country-specific recommendations and the European Semester .....................................35 

4.3 Growth potential, job creation, economic, institutional and social resilience, European Pillar of 
Social Rights, mitigating the impact of the crisis, and social territorial cohesion and convergence ......41 

4.4 The principle of ‘do no significant harm’ ...........................................................................................47 

4.5 Green transition ................................................................................................................................49 

4. 6 Digital transition ...............................................................................................................................53 

4.7 Lasting impact of the plan .................................................................................................................56 

4.8 Milestones, targets, monitoring and implementation ......................................................................60 

4.9 Costing ...............................................................................................................................................61 

4.10 Controls and audit ...........................................................................................................................64 

4.11 Coherence .......................................................................................................................................67 

References ............................................................................................................................................. 72 

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1 
1. EXECUTIVE SUMMARY

The Austria economy performed well in recent years but was strongly impacted by the 
COVID-19  crisis.  In  2019,  the  gross  domestic  product  (GDP)  per  capita  of  Austria  was 
143.7% of the EU average. Austria’s real GDP declined by 6.6% in 2020 and, according to 
the Commission’s 2021 Spring forecast, the economy is expected to be 3.4% smaller in 2021 
compared  to  2019,  with  a  return  to  pre-pandemic  levels  expected  by  mid-2022.  The 
significant  fiscal  response  taken  to  mitigate  the  socio-economic  effects  of  the  COVID-19 
pandemic and the related recession has resulted in a sharp rise of the public deficit and debt. 
In  the  Commission’s  2021  Spring  forecast,  the  general  government  deficit  is  expected  to 
narrow  from  8.9%  of  GDP  in  2020  to  7.6%  of  GDP  in  2021  and  3%  of  GDP  in  2022. 
Meanwhile, after having risen to 84% of GDP in 2020, public debt is projected to edge up to 
87.2% of GDP in 2021, before decreasing to 85% of GDP in 2022. The COVID-19 crisis has 
also  substantially  affected  the  labour  market,  triggering  a  rise  in  unemployment  despite  the 
extensive use of short-term work. The unemployment rate increased by 0.9 percentage points 
to  5.4%  in  2020.  The  Commission  spring  forecast  projects  the  unemployment  rate  to 
gradually decrease again, reaching 5.0% in 2021 and 4.8% in 2022. 

Austria’s  recovery  and  resilience  plan has  a  total  value  EUR  4.5 billion  (approximately 
1.1% of 2019 GDP), which is above the non-repayable financial support available to Austria 
under the RRF Regulation of EUR 3.46 billion (approximately 0.87% of 2019 GDP). Austria 
is not asking for loans.  

The  Austrian  plan  contains  a  balanced  set  of  mutually  reinforcing  reforms  and 
investments.  It  covers  four  broad  areas  of  relevance  to  Austria:  1  Sustainable  recovery, 
2 Digital recovery, 3 Knowledge-based recovery, and 4 Just recovery. The focus of the plan is 
on the green and digital transition, combining reform measures with large investments into the 
green and digital transitions, complemented with measures easing the social burden of these 
transitions. The plan also covers challenges brought about by the COVID-19 pandemic.  

The  measures  in  the  plan  contribute  to  addressing  a  significant  subset  of  the  country-
specific  recommendations  identified  in  recent  years  in  the  context  of  the  European 
Semester.  Planned  changes  to  the  tax  system  will  help  reduce  Austria’s  greenhouse  gas 
emissions,  while also  contributing to  shifting taxes away from  labour and taking account  of 
ecological and social aspects. The full-time labour market participation of women may benefit 
from an improved offer of early childcare facilities. The long-recognised challenge related to 
the  gender  pension  gap  is  also  tackled  through  related  measures.  Investments  in  energy 
efficiency,  renewables,  decarbonisation  of  industry,  biodiversity  and  circular  economy, 
accompanied  by  related  reforms,  including  the  overhaul  of  the  support  framework  for 
renewables  and  the  phase-out  of  oil  heating  systems,  contribute  to  promoting  the  green 
transition. Structural changes simplify the administrative burden for businesses by means of 
digital  single  access  points,  while  investments  provide  for  a  large-scale  increase  in  digital 

1 Austria submitted its National Reform Programme on 30 April 2021. The information provided in the National 
Reform Programme is being considered and jointly assessed in this Staff Working Document together with the 
recovery and resilience plan. 

2 

 
 
                                                           
capacities  of  enterprises.  The  plan  is  also  consistent  with  the  challenges  and  priorities 
identified in the most recent euro area recommendations2. 

The plan also addresses some of the social and economic challenges that have emerged 
or were exacerbated during the COVID-19 crisis. A series of active labour market policy 
measures  will  address  the  increased  need  for  help  to  the  low-skilled  and  raise  the  labour 
market  opportunities of disadvantaged  groups. Pupils will be provided with  opportunities to 
participate  in  additional  learning  activities  allowing  them  to  catch  up  with  learning  gaps 
caused by school closures.  

The  recovery  and  resilience  plan  represents  to  a  large  extent  a  comprehensive  and 
adequately  balanced  response  to  the  economic  and  social  situation, thereby  contributing 
appropriately to all six pillars referred to in Article 3 of Regulation (EU) 2021/241, taking the 
specific challenges and the financial allocation of the Member State concerned into account. 

The  recovery  and  resilience  plan  is  expected  to  ensure  that  no  measure  for  the 
implementation  of  reforms  and 
investment  projects  does  significant  harm  to 
environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852. 
The  assessment  has  been  carried  out  in  compliance  with  the  methodology  set  out  in  the 
Commission’s  Technical  guidance  on  the  application  of  ‘do  no  significant  harm’  under  the 
Recovery and Resilience Facility Regulation (2021/C 58/01).  

Overall,  the  recovery  and  resilience  plan  contributes  to  climate  objectives  through 
investments corresponding to 58.7% of the financial contribution by the Recovery and 
Resilience  Facility  of  EUR  3.46  billion,  therefore,  the  climate  target  of  37%  is 
significantly surpassed. Half of the subcomponents of the Austrian plan include investments 
that contribute to climate objectives. The measures are in line with the challenges identified in 
the National Energy and Climate Plan and are expected to contribute to the 2030 energy and 
climate  targets.  In  particular,  the  plan  focuses  on  sustainable  mobility  and  greening  of 
buildings, which are among the two biggest greenhouse gas emitters in Austria. The plan will 
meet relevant environmental objectives through its actions to support biodiversity, the circular 
economy  and  climate  adaptation.  It  will  help  meet  the  Union’s  targets  for  environmental 
policy  and  contribute  to  protecting  Austria’s  richness  in  biodiversity,  natural  carbon  sinks, 
and its Natura 2000 network. A dedicated strategy will improve biodiversity-related policies 
and actions while a new soil protection strategy aims to help reduce land use.  

Overall,  the  recovery  and  resilience  plan  contributes  to  digital  objectives  through 
investments  corresponding  to  52.8%  of  the  financial  contribution  from  the  Recovery 
and  Resilience  Facility;  therefore,  the  digital  target  of  20%  is  largely  surpassed.  The 
Austrian  plan  will  contribute  to  the  digitalisation  of  the  country  by  supporting  widespread 
deployment of Gigabit-capable access networks and by ensuring that currently underserved or 
disadvantaged  and  remote  areas  will  be  better  connected.  The  measures  in  the  plan  are 
consistent with  other Austrian frameworks setting out  the digital  targets  for 2030 and 2050, 
such  as  the  Broadband  strategy  2030  (Breitbandstrategie  2030)  or  the  Digital  Action  Plan 

2  Pending  final  adoption  by  the  Council,  after  endorsement  by  the  European  Council.  The  text  agreed  by  the 
Eurogroup on 16 December 2020 is available at: https://data.consilium.europa.eu/doc/document/ST-14356-2020-
INIT/en/pdf 

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Austria  (Digitaler  Aktionsplan  Austria).  Challenges  that  have  been  highlighted  due  to  the 
COVID-19 pandemic include the difficulty to provide digital education to all students in times 
of lockdown. The Austrian plan is expected to ensure that pupils are equipped with relevant 
digital devices, and to also improve their digital skills allowing for better use of digital means 
and methods in teaching and learning settings. 

The plan includes a significant number of reforms and investments with the potential to 
have a lasting impact and support lasting structural changes. These include the reform of the 
health  care  system,  giving  more  weight  to  primary  health  care,  and  the  support  to  mother-
child health care. Other measures included in the plan are furthermore expected to reduce the 
administrative  burden  of  businesses  and  to  contribute  to  the  digitalisation  of  the  public 
administration.  The  plan  contains  several  investments  that  are  expected  to  have  a  lasting 
impact in particular in relation to the green and digital transitions. The measures to increase 
the  use  of  renewable  energy  sources  include  shifts  to  environment-friendly  transport  and 
heating systems. Building renovations will reduce their energy use and the related emissions. 
Investments  in  high-capacity  broadband  and  other  infrastructure  measures  will  facilitate  the 
uptake  of  digital  technologies  and  support  private  households,  the  business  sector,  and  the 
public administration in making best use of technological advancements. 

The  overall  implementation  of  the  Austrian  plan  will  be  monitored  by  the  Austrian 
Ministry  of  Finance.  Appropriate  arrangements  have  been  put  in  place  setting  out  which 
ministries and agencies will be in charge of the implementation, monitoring, and reporting of 
the measures.  

The  milestones  and  targets  of  the  Austrian  plan  constitute  an  appropriate  system  for 
monitoring the plan’s implementation. The monitoring indicators are sufficiently clear and 
comprehensive to ensure that their completion can be traced and verified. The milestones and 
targets  generally  represent  the  key  elements  of  the  measures  and  as  such  can  be  considered 
relevant for their implementation. They reflect adequately the overall level of ambition of the 
plan  and  appear  realistic.  The  verification  mechanisms,  data  collection,  and  responsibilities 
described  by  the  Austrian  authorities  appear  sufficiently  robust  to  justify  adequately  the 
disbursement  requests  once  the  milestones  and  targets  are  completed.  The  number  of 
milestones  and  targets  appears  commensurate  to  the  size  of  the  reform  and  investment 
package. 

Based on the assessment of individual cost estimates and related supporting documents, 
the estimated total cost of the plan appears to be reasonable and plausible. At the level of 
individual cost estimates, reasonability is achieved if the calculations behind the cost estimate 
are  comprehensible  and  based  on  sound  underlying  assumptions.  In  the  Austrian  plan,  a 
majority  of  the  individual  cost  estimates  are  assessed  to  be  reasonable  to  a  high  extent. 
Plausibility is  achieved if the cost  estimates are  substantiated by reference costs for the key 
cost  drivers,  which  are  in  turn  supported  by  clear  evidence  and  in  line  with  comparable 
reforms  or  investments.  The  majority  of  cost  estimates  in  the  Austrian  plan  is  deemed 
plausible  to  a  high  extent.  Overall,  the  amount  of  the  estimated  total  cost  of  the  plan  is 
commensurate  to  the  expected  national  economic  and  social  impact  and  is  in  line  with  the 
principle of cost-efficiency. 

The plan includes adequate audit and control arrangements. The arrangements proposed 
in  the  recovery  and  resilience  plan  are  adequate  to  prevent,  detect  and  correct  corruption, 
fraud and conflicts of interest when using the funds provided under that Regulation, and the 

4 

 
 
arrangements  are  expected  to  be  effective  in  avoiding  double  funding  from  other  Union 
programmes. The Austrian plan includes a detailed description of the control system and the 
arrangements  put  in  place  to  ensure  the  implementation  of  the  measures  in  line  with  the 
applicable rules and regulations. The system is based on robust processes and structures, with 
the Ministry of Finance being the central coordinating body. 

Summary Assessment 

(1)  
 Balanced 
Response  

(2)  
 CSRs  

(3)  
 Growth, 
jobs…  

(4)  
 DNSH  

(5)  
 Green 
target  

(6)  
 Digital 
target  

(7)  
 Lasting 
impact  

(8)  
 M & T  

(9)  
 Costing  

(10)  
 Control 
Systems  

(11)  
Coheren
ce  

A  

A  

A  

A  

A  

A  

A  

A  

B  

A  

A  

5 

 
 
 
2. RECOVERY AND RESILIENCE CHALLENGES: SCENE-SETTER 

2.1 Macroeconomic outlook and developments since the 2020 country report  

The COVID-19 pandemic and related containment measures strongly affected Austria’s 
economy in 2020. Overall, GDP fell by 6.6% in 2020, the largest decline since 1945. In line 
with the stringency of containment measures, the sharp fall in GDP in the first half of 2020 
was followed by a strong rebound in the third quarter. However, a resurgence in infections in 
autumn sparked another lockdown, which led to a 2.7% decline in GDP in the fourth quarter 
of 2020. The nationwide lockdown was eased as of April 2021 with further substantial easing 
of  restrictions  as  of  mid-May.  Accordingly,  after  near  stagnation  in  the  first  quarter,  the 
economy is projected to resume its recovery in the second quarter of 2021 and to accelerate 
over the summer, as containment measures and travel restrictions continue to be relaxed and 
more  Austrians  get  vaccinated.  The  Commission  Spring  forecast  projects  GDP  to  grow  by 
3.4% in  2021  and 4.3%  in  2022. A  return to pre-pandemic levels  is  expected by mid-2022. 
The macroeconomic and fiscal outlook continue to be affected by high uncertainty related to 
the COVID-19 pandemic and its economic consequences. 

Tourism-related  services  were  strongly  affected  and  on  the  demand  side  private 
consumption,  equipment investment and the export of services saw  the largest decline. 
The  country’s  large  tourism  industry,  which  contributed  to  7.3%  of  GDP  in  2019,  was 
particularly  affected,  with  a  drop  of  35.9%  in  nights  spent  in  2020  and  an  almost  complete 
loss  of  the  winter  tourism  season  2020-2021.  This  led  to  a  strong  fall  in  services  exports 
(-17%).  Among  the  main  economic  sectors,  the  construction  sector  was  the  least  affected, 
declining  by  2.3%  in  2020.  On  the  demand  side,  private  consumption  dropped  significantly 
(-9.6%) due to restricted consumption possibilities due to the closure of non-essential shops, 
restaurants  and  personal  services.  This  led  to  a  strong  increase  in  the  savings  rate,  while 
investment  in  equipment  plummeted  (-11%).  Headline  inflation  was  subdued  in  2020,  at 
1.4%. It is set to rise in 2021 to 1.8%, before easing somewhat to 1.6% in 2022. 

The  significant  fiscal  response  taken  to  mitigate  the  socio-economic  effects  of  the 
COVID-19 pandemic and related recession has resulted in a sharp rise of public deficit 
and  debt.  The  crisis  brought  an  abrupt  end  to  the  period  of  improving  public  finances  in 
Austria. From a surplus of 0.6% of GDP in 2019, the general government balance turned to a 
deficit of 8.9% of GDP in 2020, as a result of the major fiscal policy measures put in place to 
mitigate the socio-economic consequences of the pandemic. Based on the Commission Spring 
forecast, the general  government deficit is expected to narrow to 7.6% of GDP in 2021 and 
3% of GDP in 2022. Driven by these developments, public debt is projected to have increased 
to about 84% of GDP in 2020, to edge up to 87.2% of GDP in 2021, before decreasing to 85% 
of GDP in 2022. 

The COVID-19 crisis has substantially impacted the labour market, triggering elevated 
levels  of  unemployment  despite  the  extensive  use  of  short-term  work.  The  Eurostat 
unemployment  rate  increased  by  0.9  percentage  points  to  5.4%  in  2020.  Short-time  work 
schemes helped mitigate the effect of the economic downturn on the labour market, leading 
instead to a strong drop in hours worked. At the same time, the proportion of the population 
classed  as  economically  inactive  also  rose,  especially  in  sectors  that  were  closed  by 
containment  measures,  making  it  not  possible  to  search  for  work.  In  contrast,  the  national 

6 

 
 
registered  unemployment  rate  saw  a  strong  rise,  from  7.4%  in  2019  to  9.9%  in  2020,  the 
highest  yearly  rate  since  the  1950s.  The  labour  force  and  the  number  of  employed  persons 
decreased by 0.4% and 1.7% respectively in 2020. However, labour market utilisation fell at a 
much steeper pace: the quarterly change between Q4 2019 and Q1 2020 amounted to -7.9% in 
Austria  compared  to  -4.6%  at  EU  level.  With  a  decline  of  12.4%,  Austria  is  among  the 
countries where women were the most affected in terms of total actual working hours in Q4 
2020 (compared with the pre-COVID situation in Q4 2019). Based on the Commission spring 
forecast, the unemployment rate is projected to gradually decrease, reaching 5.0% in 2021 and 
4.8% in 2022. 

The  macroeconomic  scenario  of  the  recovery  and  resilience  plan  is  more  cautious  for 
2021  and  similar  to  the  Commission  Spring  forecast  for  2022.  The  macroeconomic 
scenario  underpinning  Austria’s  Stability  Programme  and  the  plan’s  projects  domestic 
demand to be the main driver of the economic recovery. Growth is projected to improve from 
1.5%  in  2021  to  4.7%  in  2022  and  to  gradually  ease  afterwards  to  1.8%  in  2024.  Austria 
projects the unemployment rate at 5.1% in 2021 and 4.8% in 2022 with a further improvement 
to 4.5% in 2024. Inflation is expected to increase to 1.8% in 2021 and to remain around 1.7%-
1.8%  in  2022-2024.  The  recovery  and  resilience  plan  is  based  on  a  scenario  that  assumed 
strict  containment  measures  for  the  whole  of  Austria  in  April  2021  and  only  a  gradual 
relaxation afterwards. However, containment measures were eased in parts of the country in 
April.  The  forecast  of  the  recovery  and  resilience  plan  was  also  produced  before  the 
government  announced its relaxation plan.  Both  mainly  explain the differences between the 
recovery and resilience plan and the Commission projections, with the recovery and resilience 
plan forecasting 1.5% growth in 2021 and the Commission 3.4%.  The Commission projects 
stronger  growth  in  both  private  consumption  and  investment  in  2021,  in  line  with  the 
assumptions  reflecting  more  recent  information  of  a  faster  planned  easing  of  containment 
measures.  As  regards  the  external  environment,  the  recovery  and  resilience  plan  forecasts  a 
lower  contribution  to  growth  from  net  exports  in  2021  and  a  more  positive  contribution  in 
2022. On the labour market, the Commission projects a somewhat more favourable picture in 
2021 while the recovery and resilience plan is more favourable for 2022. Inflation projections 
are similar for 2021 and lower in the Commission forecast for 2022. Overall, the programme's 
macroeconomic assumptions are cautious for 2021 and plausible thereafter.  

Along with the more modest economic recovery, the recovery and resilience plan and the 
Stability Programme project a less favourable development for budgetary developments 
compared to the Commission 2021 Spring forecast. According to the Stability Programme, 
the general government deficit is expected to narrow from 8.9% of GDP in 2020 to 8.4% and 
4.3%  of  GDP  in  2021  and  2022,  respectively.  The  debt  ratio  is  expected  to  increase  from 
83.9% of GDP in 2020 to 89.6% of GDP in 2021 before decreasing to 88.1% of GDP in 2022.  

Austria entered the COVID-19 crisis with no identified macroeconomic imbalances, but 
with vulnerabilities linked to the housing market. While private sector debt was declining 
before the crisis, it is expected to have increased again in 2020, due to the COVID-19 induced 
decline  in  GDP.  However,  the  growth  of  credit  to  the  domestic  private  sector  decelerated 
compared to  pre-crisis  levels.  Real  house prices  continued to  grow and accelerated  again  in 
2020,  especially  for  single-family  housing,  reflecting  changing  preferences  due  to  the 
increased  reliance  on  homeworking.  However,  given  the  parallel  decrease  in  disposable 

7 

 
 
incomes,  signs  for  overvaluation  have  increased.  While  warranting  monitoring,  the  price 
increases do not appear to be credit-driven, as loans for house purchases decelerated in 2020. 
The  banking  sector  proved  resilient  so  far  and  helped  mitigate  the  impact  of  the  crisis.  The 
Non-Performing-Loans (NPL) ratio dropped further in 2020 to 2%, as government measures 
helped support companies during the crisis. However, as the policy measures are expected to 
be  gradually  withdrawn  on  the  back  of  the  economic  recovery,  NPLs  are  expected  to  rise 
again. 

The COVID-19 pandemic is likely to increase the risk of social exclusion of vulnerable 
groups.  Τhe  overall  social  situation  was  improving  until  the  outbreak  of  the  COVID-19 
pandemic, and policies to reduce poverty and social exclusion were generally effective. This 
is also reflected in the percentage of people at risk of poverty and social exclusion, which was 
at 13.3% in 2019 far below the EU average of 21.1%. Emergency policy measures taken by 
the Austrian government (e.g. short-time working scheme, one-off payments for unemployed 
and children) cushioned substantially against the income losses brought about by the COVID-
19  crisis,  especially  for  poor  households.  Overall,  about  88%  of  the  COVID-19-related 
income shock was absorbed by the Austrian tax-benefit system3. However, the current crisis 
may  deteriorate  the  situation  of  vulnerable  groups  such  as  atypical  workers,  foreign-born 
adults, long-term unemployed and families with three or more dependent children as well as 
single-parent  families  who  risk  falling  behind.  For  example,  the  at-risk-of-poverty  rate  for 
children of low-skilled parents stood at 76.7% in 2019 (EU-27 average 61.8%) and reached 
89.5%  in  2020.  The  at-risk-of-poverty  rate  of  unemployed  stood  at  43.3%  in  2019  (EU-27 
average  49  %)  and  increased  substantially  to  48%  in  2020.  Overall,  the  pandemic  will  put 
certain  groups  at  greater  risk  of  poverty  and  social  exclusion  than  before,  in  particular  the 
self-employed.  

Table 2.1: Comparison of macroeconomic developments and forecasts  

3  See  Christl,  M.,  De  Poli,  S.,  Kucsera,  D.  and  Lorenz,  H.  (2021),  “COVID-19  and  (gender)  inequality  in 
income:  the  impact  of  discretionary  policy  measures  in  Austria”,  JRC  Working  Papers  on  Taxation  and 
Structural Reforms, 05-2021 (forthcoming). 

8 

 
 
 
                                                           
2.2  Challenges  related  to  sustainable  growth,  cohesion,  resilience  and  policies  for 

the next generation  

While the Austrian economy has performed relatively well in recent years, a number of 
challenges and structural obstacles to more sustainable and inclusive long-term growth 
remain  and  have  become  more  pressing as  a  result  of  the  pandemic  and  related 
recession. Austria’s policy response was effective in mitigating the socio-economic fallout of 
Covid-19 crisis. However, further efforts need to be made to put Austria on a path for more 
sustainable  and  inclusive  growth.  This  will  require  tackling  a  number  of  country  specific 
challenges and structural obstacles related to the twin transition.  

Austria  faces  challenges  related  to  the  green  transition  and  digital  transformation. 
Without  taking further  measures,  Austria is  unlikely to  achieve its  greenhouse  gas emission 
targets  and  reach  its  government’s  target  of  climate  neutrality  by  2040  (see  Section  2.3.1). 
The  weak  uptake  of  digital  technologies  especially  among  SMEs,  combined  with  further 
investment needs and digital skills shortages, represent further challenges (see Section 2.3.2).  

Smart, sustainable and inclusive growth 

Austria’s  scope  for  comprehensive  tax  reforms  to  boost  fairness,  inclusive  growth  and 
environmental sustainability could become a key element of the country’s policy agenda 
to drive post-crisis economic recovery. Despite recurring tax relief reforms (in 2005, 2010, 
2015  and  2020),  Austria  remains  a  high-tax  country  whose  tax  structure  is  relatively 
detrimental to sustainable and inclusive growth in international comparison. The tax mix puts 
a  high  burden  on  labour,  while  the  revenue  potential  especially  of  wealth-related  and 
environmental  taxes  remains  largely  untapped.  Consumption  taxes  could  be  made  more 
efficient, e.g. by overhauling the system of reduced value-added tax rates and bringing taxes 
on tobacco and alcohol and environmental taxes more in line with EU averages. Additionally, 
increasing the level and efficiency of energy taxes by introducing a price for CO2 will be key 
to reducing emissions to achieve EU and national climate targets.  

The current labour market situation calls for appropriate measures to prevent a rise in 
structural  unemployment,  especially  among  vulnerable  groups,  facilitate  good  job 
matching, and improve female labour market participation. Employees in sectors directly 
affected  by  the  containment  measures,  such  as  the  tourism-sector  and  personal  and  other 
services,  face  higher  unemployment  risks,  as  do  vulnerable  groups  (older  workers,  people 
with migrant background, labour market entrants and the low skilled). Appropriate measures 
to  ease  the  labour  market  re-integration  of  people  at  risk  of  remaining  unemployed  for  a 
longer  time,  including  through  developing  digital  skills  will  be  crucial  for  an  inclusive 
economic  recovery.  An  increased  offer  of  quality  childcare  would  help  women  to  combine 
working  life  with  care  responsibilities,  a  challenge  that  has  aggravated  during  the  crisis. 
Addressing this would have the potential to raise the labour market participation of women in 
particular. Tailored adult learning and reskilling measures may positively affect labour market 
attainment  of  older  workers,  workers  with  migrant  background,  refugees  and  low  skilled. 

9 

 
 
Expected  shifts  in  the  labour  market  will  require  generally  more  attention  to  reskilling  and 
upskilling as well as related adaption in the education sector4.  

Investments  to  support  digitalisation  and  innovation,  coupled  with  improved  business 
regulation  are  Austria’s  main  levers  for  boosting  productivity  growth.  Potential  growth 
has been on a long-term downward trend in Austria in recent years. The slowdown has been 
largely driven by the declining trend in total factor productivity growth and the fall in hours 
worked,  together  with  projected  lower  growth  in  the  working-age  population.  Additionally, 
Austria  needs  to  promote  business  digitalisation  especially  among  SMEs  in  order  to  ensure 
long-term resilience. 

Austria’s  future  competitiveness  also  depends  on  turning  R&D  investments  into 
proportional innovation outcomes. Austria’s research and development (R&D) intensity has 
been  one  of  the  highest  in  the  EU  but  the  country  has  lagged  behind  innovation  leaders  in 
terms  of  innovation  outcomes,  such  as  fast-growing  enterprises  or  knowledge  intensive 
exports5.  With  many  businesses’  research  budgets  now  under  pressure,  it  is  even  more 
important to translate Austria’s R&D efforts into cutting-edge innovation. Increased financial 
resources, in particular in environmental and energy research and innovation will be crucial to 
prepare Austria for the upcoming challenges related to the green transition.  

A  high  administrative  and  regulatory  burden  on  firms  discourages  investment,  in 
particular  among  SMEs  and  company  growth  needs  more  support.  Lowering  the 
administrative burden on businesses, including through efficient digital public services, would 
provide  immediate,  tangible  relief  without  burdening  the  taxpayer.  Reducing  restrictive 
regulation  in  the  services  sector  (e.g.  restrictions  on  exercising  certain  professional  services 
and  operational  restrictions  in  the  retail  sector)  could  boost  investment  and  competition 
among service providers, which in turn could lower input costs for manufacturing firms. The 
insolvency  framework  should  be  geared  towards  insolvency  prevention  but  also  to  speedy 
unwinding  processes  and  allowing  for  a  ‘second  chance’.  Austria  has  one  of  the  lowest 
proportions of high growth firms active in innovation in the EU. In 2017 around 14% of high-
growth firms in Austria were active in knowledge intensive services in Austria compared to 
19% in the EU276. There is scope to further support entrepreneurship, including by fostering 
innovative technologies and access to capital for starting and scaling-up businesses. Venture 
capital investments declined considerably in the last five years (around 40% based) and there 
is  evidence  that  the  number  of  early  and  late-stage  deals  declined  more  than  the  number  of 
seed deals. The capacity of the Austrian public administration to apply EU single market laws 

4 See also Böheim, R. and Christl, M. (2021). "Mismatch unemployment in Austria: The role of regional labour 
markets for skills," JRC Working Papers on Labour, Education and Technology 2021-08. 
5 See, among others, Benedetti Fasil, C, Domnick, C, Fako, P, Flachenecker, F., Gavigan, J. P., Janiri, M. L., del 
Rio, J-C, Stamenov, B. and Testa, G., High Growth Enterprises in the COVID-19 Crisis Context demographics, 
environmental  innovations,  digitalization,  finance  and  policy  measures,  JRC.  Publications  Office  of  the 
European Union, Luxembourg, 2021. 
6  See  Benedetti  Fasil,  C.,  Del  Rio,  J.C.,  Domnick,  C.,  Fako,  P.,  Flachenecker,  F.,  Gavigan,  J.,  Janiri,  M., 
Stamenov,  B.  and  Testa,  G.,  High  Growth  Enterprises  in  the  COVID-19  Crisis  Context,  EUR  30686  EN, 
Publications Office of the European Union, Luxembourg, 2021, ISBN 978-92-76-37269-1, doi:10.2760/63402, 
JRC124469 for an in-depth discussion of the COVID impact on high-growth enterprises in EU countries. 

10 

 
 
                                                           
could be improved by strengthening the staffing of national SOLVIT centres7, which provide 
solutions related to problems in the application of EU rights.  

Social and territorial cohesion 

Austria  performs  relatively  well  on  the  Social  Scoreboard  supporting  the  European 
Pillar of Social Rights, but the pandemic could exacerbate existing challenges. The social 
situation has been improving before the pandemic. Spending on social protection is among the 
highest  in  the  EU  and  social  transfers  are  effective  in  reducing  income  inequality  and 
protecting people from poverty and social exclusion. However, vulnerable groups remain and 
while in 2019, the share of people at risk of poverty or social exclusion fell to 16.9%, it again 
increased  to  17.5%  in  2020  due  to  the  pandemic.  Although  Austria  has  one  of  the  highest 
coverage  rates  of  unemployment  benefits  for  the  short-term  unemployed,  marginally 
employed people may suffer an increasing risk of poverty during pandemic. In addition, the 
social  situation  continues  to  vary  significantly  across  regions.  While  the  share  of  people  at 
risk  of  poverty  or  social  exclusion  decreases  in  cities  it  has  increased  in  rural  areas. 
Safeguarding territorial cohesion in future will also imply to offer favourable perspectives to 
people in rural areas, including remote ones. 

Economic  disparities  between  Austrian  regions  are  among  the  smallest  in  the  EU  and 
have narrowed steadily, yet the impact of the crisis remains to be seen. Economic growth 
and  labour  market  developments  differ  between  the  West  of  Austria,  which  shows  a  higher 
GDP  per  capita  and  lower  unemployment  rates,  as  compared  to  the  East  and  South,  with 
Vienna taking a special position. Nevertheless, economic disparities between Austrian regions 
are among the smallest in the EU and have narrowed steadily. However, significant regional 
disparities persist in R&D expenditure and broadband coverage in rural areas, increasing the 
divide in digitalisation and innovation capacities between regions. 

Health, and economic, social and institutional resilience  

The coverage provided by the Austrian healthcare system is high but public health care 
spending continues to pose a challenge for fiscal sustainability in the medium and long 
term.  The  Austrian  healthcare  system  has  so  far  dealt  successfully  with  the  COVID-19 
pandemic,  by  making  substantial  funds  available  to  purchase  equipment  and  supplies, 
reinforcing  laboratory  capacity,  and  strengthening  staffing  capability.  However,  primary 
health care has come under exceptional pressure from an unprecedented increase in the need 
for teleconsultations, medical appointments and requests. Expanding primary and ambulatory 
care services  with a focus on health promotion  and disease prevention would therefore help 
further  improve  population  health  and  help  Austria  master  the  pandemic.  Moreover,  further 
expanding  primary  care  could  also  help  cushion  the  impact  of  the  expected  wave  of 
retirements of general practitioners and help improve efficiency and the fiscal sustainability of 
the health care system. According to the 2021 Ageing Report (AWG reference scenario), the 

7 The Solvit network is a body funded by the European Commission to assist citizens and businesses to ascertain 
their  EU  rights  in  cases  where  a  dispute  has  risen  between  a  citizen  or  a  company  and  an  official  body  of  a 
Member  state  of  the  European  Union.  There  is  a  Solvit  centre  in  every  member  state  (as  well  as  in  the  EEA 
Member States Norway, Iceland and Liechtenstein). 

11 

 
 
                                                           
 
share  of  GDP  spent  on  public  health  care  is  projected  to  increase  by  1.2  percentage  points 
from 6.9% in 2019 to 8.1% in 2070, as compared to an EU average increase of 0.9 percentage 
points.  The  over-utilisation  of  hospital  care  has  been  identified  as  the  key  driver  of  this 
growth, which makes the timely implementation of existing reforms (e.g. the implementation 
of a 'target-based governance' system, the 2017 Primary Health Care Act, and the merger of 
social health insurance funds) all the more important. 

While  risks  of  fiscal  stress  appear  to  be  contained  in  the  short  and  medium  term, 
Austria continues to have a medium fiscal sustainability risk in the long term. This risk is 
due  to  the  projected  increase  in  public  expenditure  on  pensions,  healthcare  and  long-term 
care.  Given  the  projected  increase  of  public  healthcare  expenditure,  the  thorough 
implementation  of  ongoing  structural  reforms  remains  important  provided  the  pandemic 
continues  to  be  effectively  dealt  with.  For  long-term  care,  discussions  on  a  comprehensive 
reform  are  ongoing.  On  pensions,  the  Austrian  pension  system  compares  well  in  terms  of 
overall  pension  adequacy  but  public  pension  expenditure  is  high  in  comparison  to  the  EU 
average.  While  adjusting  the  statutory  retirement  age  has  been  repeatedly  ruled  out  for  the 
ongoing legislative period, there is still room to incentivise longer working lives by making 
early retirement less financially attractive.  

Austria’s  fiscal  federalism  favours  the  perception  of  soft  budget  constraints  at  the 
subnational  level,  providing  few  incentives  for  efficient  public  spending.  Instead  of 
relying  on  tax  autonomy,  subnational  budgets  are  fed  by  a  complex  system  of  tax  sharing, 
intergovernmental transfers and  cost  bearing,  especially at  the level  of the  Länder.  In 2018, 
some  83%  of  total  tax  revenue  was  shared  across  different  levels  of  government  (vertical 
equalisation)  and  across  entities  of  the  same  level  (horizontal  equalisation).  At  each 
distributional level, a variety of allocation formulas is applied, the most important one being 
fixed percentages of historical revenue shares and weighted population shares. This makes the 
system  highly  complex  and  opaque  and  blurs  the  link  between  tax  burden  and  expenditure, 
making it difficult for individuals to hold their subnational government accountable. 

As new priorities have emerged, spending reviews are a crucial tool for targeting public 
expenditure towards them. Public spending in the context of the COVID-19 pandemic and 
related  recession  should  be  aligned  with  and  complemented  by  spending  for  the  green  and 
digital transition. To this end, revamping the process of spending reviews takes centre stage. 
This  would  require  Austria  to  scrutinise  expenditure  allocations  against  the  priorities 
mentioned  above  to  generate  further  efficiency  gains  that  could  be  redirected  towards  these 
more  pressing  spending  needs.  Given  the  ambition  of  the  exercise,  such  reviews  could  be 
targeted to some specific sectors (health, energy, investment) or could be comprehensive but 
phased in over two to three years. 

In  terms  of  financial  stability,  the  banking  sector  has  remained  robust  and  weathered 
well the challenges posed by the pandemic.  The Austrian banking sector has increased its 
resilience over the last couple of years, as it has managed to unwind past vulnerabilities and 
strengthened its capital  buffers and liquidity position.  Like other banking sectors in the EU, 
the  Austrian  banking  sector  has  benefitted  from  the  public  measures  supported  by  the 
authorities  to  support  households  and  companies,  in  particular,  loan  moratoria  and  public 
guarantee schemes. Banking sector profitability has come under pressure due to the increase 
in  loan-loss  provisions  and  the  pressures  on  net  interest  income.  The  current  developments 

12 

 
 
underscore  the  need  for  further  banking  sector  consolidation  to  increase  efficiency  and 
maintain  the  profit  generation  capacity  of  banks,  including  in  the  current  low-interest 
environment. The access of Austrian companies to non-bank financing has remained subdued 
and requires renewed impetus. 

Policies for the next generation, children and the youth, including education and skills 

Existing  inequalities  in  the  educational  system  linked  to  socio-economic  and  migrant 
backgrounds  were  exacerbated  during  the  COVID-19  crisis  especially  during  distance 
learning. To ensure equal access in education irrespective of the socio-economic background, 
the  recovery  strategy  should  improve  access  to  inclusive,  good-quality  early  childhood 
education and care  as  it  helps  reduce social  disadvantages. Differences in conditions  during 
home schooling and in access to digital equipment and education during the COVID-19 crisis 
led  to  further  digital  and  educational  inequalities,  leaving  disadvantaged  groups  in  Austria 
further  behind.  There  is  a  need  for  better  support  for  disadvantaged  pupils,  be  it  during 
distance learning or at school, and linked to this more differentiated funding of schools. More 
generally, digital education needs to be improved at all levels of formal education, including 
through providing appropriate infrastructure and devices, digital equipment for disadvantaged 
learners, teacher training and digital learning content (see Section 2.3.2). 

2.3 Challenges related to the green and digital transition 

An overarching objective of the Recovery and Resilience Facility is to support the twin 
transition8.  Austria’s  greenhouse  gas  emissions  are  still  well  above  EU  average  and  more 
efforts  are  needed  to  achieve  carbon  neutrality,  while  the  distance  to  the  best  performing 
countries in  the digital  transition  has increased, as measured in  the European Commission’s 
assessment of Austria’s 2020 National Energy and Climate Plan (NECP) and the 2020 Digital 
Economy and Society Index (DESI). Austria will need to increase its ambition to reduce its 
greenhouse gas emissions and achieve carbon neutrality as well as to join the group of leading 
countries  in  the  digital  transition.  This  section  describes  where  Austria  stands  in  achieving 
targets related to the green and digital transitions. 

2.3.1 Green dimension  

The recovery and resilience plan should contribute to the green transition and at least 
37% of the financial allocation needs to contribute to climate objectives. The measures in 
the  plan  are  expected  to  contribute  to  achieving  the  EU’s  2050  climate  neutrality  objective, 
and the 2030 energy and climate targets, taking into account Member States’ national energy 
and  climate  plans.  They  should  also  contribute  to  meeting  environmental  targets  for  waste, 
water, pollution control, sustainable mobility, biodiversity protection and restoration, marine 
and  water  resources,  and  support  the  transition  to  sustainable  food  systems  as  well  as  to  a 
circular economy as appropriate, while ensuring that nobody is left behind.  

8  The  Regulation  states  that  the  Facility  should  support  the  green  transition  towards  achieving  the  EU’s  2030 
climate  targets  and  complying  with  the  objective  of  EU  climate  neutrality  by  2050.  It  should  also  support  the 
digital  transition.  In  this  regard,  the  (proposed)  Regulation  sets  a  binding  target  that  the  measures  in  the  plan 
shall contribute at least 37% of the plan’s total allocation to contribute to climate mainstreaming. It also sets a 
binding target that the measures in the plan must contribute at least 20% of the total allocation to contribute to 
the digital transition or the challenges resulting from it. 

13 

 
 
                                                           
Greenhouse gas emissions 

Austria’s  greenhouse  gas  emissions  are  still  above  EU  and  national  targets.  Total 
greenhouse gas (GHG) emissions are above 1990 levels, while they have fallen by a quarter in 
the  rest  of  the  EU  over  the  same  period.  Per  capita  GHG  emissions  also  remain  above  the 
2019  EU  average.  In  recent  years,  emission  reductions  in  industry  have  been  offset  by 
increases  in  final  energy  consumption  in  buildings  and  transport.  Prior  to  the  COVID  -19 
pandemic, Austria risked missing its 2020 mandatory emissions reduction target and was also 
not on track to reach the 2030 target. Austria’s NECP identifies major challenges in reaching 
the 2030 target for GHG emissions not covered by the EU Emission Trading System (ETS). 
Austria’s transformation to a climate neutral economy will require sizeable private and public 
investment  over  a  sustained  period.  Without  further  measures,  Austria’s  ambitious  goal  to 
become climate-neutral by 2040 is unlikely to be achieved.  

Reaching  EU  and  national  climate  targets  will  require  broadening  and  improving  the 
pricing of GHG emissions to accelerate the green transition. Diesel and petrol tax levels in 
Austria (including VAT) are among the lowest in the EU. Climate mitigation would benefit 
from a faster phase out of subsidies and incentives that are counterproductive to energy and 
climate targets. Broadening and improving the carbon pricing in polluting sectors not covered 
by the EU ETS will be key for emission reductions.  The transition to climate neutrality is a 
challenge  in  particular  for  regions  in  which  carbon-intensive  industries  play  a  key  role  for 
employment. 

Reducing  emissions  related  to  transport  is  key  for  Austria’s  shift  towards  climate 
neutrality, and for meeting air quality standards. The share of transport-related emissions 
(mostly road, excluding aviation) rose steadily since 1990, increasing their share in Austria’s 
total  GHG  emissions  from  18%  to  30%  (in  2019),  with  air  quality  standards  remaining  a 
concern. According to Austria’s NECP, the transport sector has the greatest potential for GHG 
emission  reduction  (7.2  million  t  CO2eq  by  2030  compared  to  2016).  Austria  is  shifting 
transalpine  transport  to  rail,  but  similar  efforts  are  needed  for  other  modes  of  transport.  In 
particular,  climate  mitigation  would  benefit  from  additional  investment  in  low  and  zero-
emission vehicles and sustainable urban mobility. 

The  building  sector  is  an  important  emitter  in  Austria,  which  maintains  an  important 
potential  for  emissions  reduction.  Austria  has  a  quantitative  target  for  further  emission 
reductions  also  in  the  building  sector  (3  Mt  CO2eq  between  2016  and  2030).  The  more 
efficient  use  of  building  materials  in  construction  and  renovation  (circular  economy)  would 
contribute to a further reduction in GHG emissions and benefit environmental targets.  

Renewable energy 

Austria is on track to meet its EU renewable energy target, but significant investment is 
required  to  reach  Austria’s  objective  of  100%  renewable  electricity  consumption  by 
2030.  To  decarbonise  its  electricity  system,  Austria  needs  to  install  additional  renewable 
energy generation of 27 terawatt hours annually. To this end, the draft Renewables Expansion 
Law9 pursues the revision of the national support system  for renewable energies. Achieving 

9 Notified as State aid subject to any changes that may be required to ensure compliance with State aid rules.  

14 

 
 
                                                           
this  goal  will  also  require  a  substantial  increase  of  renewable  energy10  in  the  heating  and 
cooling  and  transport  sectors.  It  is  therefore  important  to  finalise  and  implement  the 
renewable heating strategy, as well as to promote e-mobility and the use of renewable and low 
carbon fuels. 

Energy and resource efficiency 

Austria  is  not  on  track  to  meet  its  energy  efficiency  target,  but  further  efforts  are 
planned. As reflected in  the final  NECP, for energy efficiency, the Austrian contribution  is 
translated into a range of 28.7-30.8 million tons of oil equivalent (Mtoe) for primary energy 
consumption  and  24.0-25.6  Mtoe  for  final  energy  consumption11.  These  targets  are  low  in 
ambition. The NECP recognises the ‘energy efficiency first’ principle and provides elements 
on energy efficiency of buildings. Austria’s 2020 Long-term renovation strategy sets a clear 
list of milestones until 2050, expressed in GHG emission and estimates that the measures are 
adequate to  achieve the  envisaged 80% decarbonisation of the buildings  stock. The strategy 
emphasises  the  phasing  out  of  coal  and  oil  for  heating  purposes  and  addresses  building 
renovation  with  a  comprehensive  mix  of  regulatory  requirements,  fiscal  and  economic 
incentives, and information measures12.  

Energy system infrastructure  

The  energy  system  infrastructure  needs  to  be  adapted  to  the  needs  of  the  green 
transition.  The  planned  increase  in  the  share  of  renewable  energy  sources  will  require  a 
higher  degree  of  resilience  and  flexibility  for  the  national  energy  system.  Significant 
investment  in  storage  infrastructure,  transmission  and  distribution  networks  is  needed  to 
support the transformation of the energy system. 

Greening the tax system 

Austria  has  considerable  scope  for  comprehensive  tax  reforms  to  foster  fairness, 
inclusive growth, and environmental sustainability.  Increasing the level and efficiency of 
Austria’s energy taxes also by introducing a price for CO2 is key to reducing emissions. As 
announced in the government programme, Austria is planning to green its tax system. While 
several measures of the first part of an eco-social reform have been adopted, including (i) an 
extension of the commuters’ tax allowance for the use of public transport and bicycles, (ii) the 
exemption  of  renewable  electricity  produced  by  railway  companies  from  network  charges, 
(iii)  the  harmonisation  of  the  air  ticket  charge,  and  (iv)  a  reform  of  the  motor  vehicle 
registration  tax  with  a  stronger  link  to  CO2  emissions,  additional  measures  such  as  those  to 

10 The NECP specifies the national contribution to the 2030 EU renewable energy target with a renewable share 
of  46-50%  of  gross  final  energy  consumption  in  2030.  See  Economidou,  M.,  Ringel,  M.,  Valentova,  M., 
Zancanella, P., Tsemekidi Tzeiranak, S., Zangheri, P., Paci, D., Ribeiro Serrenho, T., Palermo, V. and Bertoldi, 
P., National Energy and Climate Plans for 2021-2030 under the EU Energy Union, EUR 30487 EN, Publications 
Office of the European Union, Luxembourg, 2020, ISBN 978-92-76-27013-3, doi:10.2760/678371, JRC122862. 
11  Tsemekidi-Tzeiranaki,  S., Paci,  D., Cuniberti,  B., Economidou,  M.  and  Bertoldi,  P.,  Analysis  of  the  Annual 
Reports  2020  under  the  Energy  Efficiency  Directive,  EUR  30517  EN,  Publications  Office  of  the  European 
Union, Luxembourg, 2020, ISBN 978-92-76-27416-2, doi:10.2760/180952, JRC122742.  
12  Castellazzi,  L., Zangheri,  P., Paci,  D., Economidou,  M., Labanca,  N.,  Ribeiro Serrenho,  T., Zancanella,  P. 
and Broc, J., Assessment of second long-term renovation strategies under the Energy Efficiency Directive, EUR 
29605  EN,  Publications  Office  of  the  European  Union,  Luxembourg,  2019,  ISBN  978-92-79-98727-4, 
doi:10.2760/973672, JRC114200.  

15 

 
 
                                                           
counteract  ‘Tanktourismus’,  to  green  the  existing  truck  toll  and  to  abolish  company  car 
privileges are still missing.  

Green budgeting 

Making  use  of  green  budgeting  can  contribute  to  delivering  on  national  and 
international commitments for climate change and environmental protection. Evaluating 
the environmental impact of budgetary and fiscal policies and assessing their coherence with 
strategic  objectives  can  help  make  governments  more  accountable  and  therefore  improve 
compliance  with  central  environmental  and  climate  goals.  So  far,  Austria  makes  no  use  of 
green budgeting practices. 

Circular economy 

Efficient  use  of  resources,  including  natural  capital,  and  developing  eco-innovation  is 
key to boosting competitiveness and building open strategic autonomy, while minimising 
the  environmental  impact.  Through  further  regulatory  measures  and  financial  incentives, 
Austria  could  promote  sustainable  product  design,  resource  efficient  production  processes, 
digital  solutions,  industrial  symbiosis, remanufacturing in  key value chains, and alternatives 
to unsustainable extraction of raw materials, and new circular business models. There is also 
scope  to  shift  reusable  and  recyclable  waste  away  from  incineration,  including  through 
economic instruments, to ensure that post-2020 recycling targets, in particular on plastics, are 
met.  Investments  in  eco-innovation  would  trigger  productivity  growth  while  reducing 
Austria’s  ecological  footprint.  Further  investments  are  needed  to  maintain  Austria’s  leading 
position in environmental technology.  

Biodiversity protection and restoration 

Protecting  and  restoring  biodiversity  and  healthy  ecosystems  is  key  to  boosting 
resilience and will help meet climate targets. In terms of biodiversity and ecosystem health, 
Austria presents a mixed picture.  It is rich in biodiversity, as reflected in  the above-average 
size  of  the  Natura  2000  network.  With  around  a  quarter  of  its  utilised  agricultural  area 
devoted to organic farming, which contributes to sustainable food framework and provision of 
eco-system  services,  Austria  is  among  EU  frontrunners.  At  the  same  time,  many  protected 
habitats  and  species  remain  in  an  unfavourable  conservation  status,  with  further  recent 
declines being reported13. Intensive land-take and expanding urban sprawl remain a source for 
concern.  In  July  2020,  Austria  submitted  its  prioritised  action  framework  (PAF)  listing 
priority  conservation  and  restoration  measures  for  rivers,  forests  and  peat  bog  habitats  to 
reverse  this  decline  and  to  ensure  a  full  implementation  of  the  EU  nature  rules.  Fully 
implementing  these  measures  would  not  only  significantly  improve  biodiversity,  but  also 
contribute to climate mitigation and adaptation. 

Average  temperature 
in  Austria  rose  by  around  2°C  since  the  beginning  of 
industrialisation, increasing the need for adaptation to climate change. Accounting for 58% 
of  natural  carbon  storage  in  Austria,  forests  can  play  a  key  role  in  climate  mitigation  and 
adaptation.  However,  climate-change-induced  extreme  weather  events  and  pest  infection, 
which particularly affect monoculture ecosystems, threaten their resilience.  

13 Report on the State of Nature in the EU, European Commission 2020. 

16 

 
 
                                                           
The  table  below  gives  an  overview  of  Austria’s  objectives,  targets  and  contributions  under 
Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 
2018 on the Governance of the Energy Union and Climate Action. 

Table  2.3.1:  Overview  of  Austria’s  objectives,  targets  and  contributions  under 
Regulation (EU) 2018/1999  

National targets and 
contributions  

Latest 
available 
data 

2020 

2030 

Assessment of 
2030 ambition 
level 

11.0% 

Binding target for greenhouse 
gas emissions compared to 2005 
under the Effort Sharing 
Regulation (%) 
National target/contribution for 
renewable energy: Share of 
energy from renewable sources 
in gross final consumption of 
energy (%) 
National contribution for energy efficiency 
Primary energy consumption 
(Mtoe) 
Final energy consumption 
(Mtoe) 

33. 6% 

32.2% 

28.3% 

16.0%  36.0%  As in ESR 

34.0% 

46.0%-
50.0% 

Adequate (46% 
is the result of 
RES formula) 

31.5%  30.8% 

low 

25.1%  25.6% 

low 

Level of electricity 
interconnectivity (%) 

15.3% 

10.0%  15.0%  N.A. 

Source: Assessment of the final national energy and climate plan of Austria, SWD (2020) 919 final. 

2.3.2 Digital dimension  

The recovery and resilience plan should contribute to the digital transition and at least 
20% of the financial allocation needs to contribute to digital objectives. The measures in 
the plan should, inter alia, contribute to the digital transformation of the economic and social 
sector (including public administration, accessible public services, and the justice and health 
systems).  The  objective  of  the  measures  in  the  plan  should  be  to  improve  not  only  the 
competitiveness, but also the resilience, agility and security of companies and public actors, 
all while ensuring inclusiveness.  

Austria ranks 13th among EU Member States in the DESI 202014. While Austria remains 
slightly above the EU average, the gap with the best performing countries has increased. The 
2020  ‘Digital  Action  Plan  Austria’  formulates  a  strategic  framework  for  digitalisation, 
emphasising Austria’s long-term target to become a ‘Digital Responsible Society’.  

Higher levels  of digital skills  and digital learning help supporting  the recovery. Thirty-
four  percent  of  the  Austrian  population  between  16  and  74  years  do  not  have  basic  digital 

14 DESI is the main analytical tool of the European Semester on digital. DESI provides the baseline of Member 
States digitalisation and identifies the main challenges that will need to be addressed. 

17 

 
 
 
 
 
 
 
 
 
 
                                                           
skills15. There is a need to improve at least basic digital skills of the population through equal 
access to education and upskilling and reskilling measures. Digitalisation of school education 
is  a  major  priority,  requiring  significant  investments  in  connectivity,  digital  devices,  digital 
learning  content  and  digital  skills  training  for  teachers.  In  2020,  the  proportion  of  ICT 
specialists  in  the  workforce  accounted  for  4.5%,  slightly  higher  than  the  EU  average  of 
4.3%16.  However,  Austrian  businesses  still  lack  staff  with  the  right  digital  skills.  Therefore, 
Austria  has  a  need  to  incentivise  and  invest  in  the  up-  and  reskilling  of  its  labour  force, 
increase the number of digital experts in all disciplines and focus on increasing the workforce 
potential through inclusion to catch up with the best-performing countries.  

The weak uptake of digital technologies and business models among smaller companies 
represents a bottleneck for productivity growth. Austria performs below the EU average as 
regards the integration of digital technologies by businesses. Austrian companies still do not 
take  full  advantage  of  the  use  of  digital  technologies  such  as  cloud  services  or  big  data, 
despite  a  recent  substantial  increase  in  the  percentage  of  companies  using  social  media  and 
selling online. Lack of skilled staff is a bottleneck for further growth. It is also important to 
raise awareness among SMEs of the relevance of digitalisation of their business processes and 
products to reap the full range of benefits from adopting digital technologies.  

Austria’s  performance  in  connectivity  is  currently  below  EU  average,  particularly  for 
fixed  very  high-capacity  networks.  Although  the  country  has  a  high  level  of  mobile 
coverage, it scores below the EU average for fixed very high-speed broadband coverage and 
take-up.  Austria  has  become  a  pioneer  in  the  roll-out  of  5G,  and  consumers  already  have 
access  to  commercial  5G  offers.  The  coverage  with  fixed  very  high-capacity  networks, 
however, is low with 39% of the households covered in 2020. This is below the EU average 
of  59%17.  Investment  to  increase  Gigabit-capable  connections  needs  to  rise  substantially  to 
bridge the gap between Austria and the rest of the EU. The acceleration of the roll-out of rural 
broadband  would  enable  further  progress  in  digitalisation.  Additional  efforts  and  initiatives 
are  required  to  bring  Gigabit-capable  connections  to  underserved  rural  areas,  as  current 
measures will not be sufficient to achieve the EU-wide 2025 Gigabit targets. 

Digital public services are the DESI dimension for which Austria performs best. Austria 
has taken many targeted measures in digital public services to deal with the COVID-19 crisis. 
Austria  has  traditionally  been  a  front-runner  in  federal  e-government  services  and  scores 
above the EU-average in providing digital public services to its population. Digitalisation is 
the main objective of the ‘Digital Austria’ initiative to consolidate Austria’s role as a leading 
digital  nation  to  guarantee  and  expand  prosperity,  equal  job  opportunities,  as  well  as  the 
quality  of  life  in  the  long  term.  Continued  efforts  by  the  Austrian  public  sector  to  meet  the 
legal requirements of the Web Accessibility Directive will ensure their efficient and effective 
delivery. Overall, the Austrian public sector is digitally advanced compared to its EU peers, 
and an additional focus on open data and e-government users will help Austria join the most 
advanced countries in the DESI ranking for digital public services.  

15 Eurostat – Community survey on ICT usage in households and by individuals. 
16 Eurostat – Labour force survey. 
17 Broadband coverage in Europe studies for the European Commission by IHS Market, Omdia and Point Topic.  

18 

 
 
                                                           
Digital-related  investment  in  R&D  is  an  important  driver  for  the  digital  and  green 
transformation. The  recently  published  federal  strategy  for  research,  technology  and 
innovation  2030  puts  emphasis  on  the  need  to  strengthen  R&D  of  (key)  technologies  in 
digitalisation, in  particular  on contributing  to  the  development  of  new  digital  products  and 
services  and  on  supporting  the  digital  transformation  of  the  economy,  such  as  Artificial 
Intelligence,  High  Performance  Computing,  cybersecurity  and  blockchain.  To  boost  the 
Industry  4.0  transition,  Austria  requires  R&D  efforts  in  several  areas  such  as virtualisation, 
sensor systems, software engineering, cyber-physical systems.  

Microelectronics  is  a  key  enabling  technology  for  the  digital  transformation  of  all 
economic  and  societal  sectors,  as  well  as  for  the  achievement  of  the  European  Green 
Deal  objectives.  The  supply  of  clean  and  renewable  energy,  of  smart  and  sustainable 
mobility, resource-efficient buildings and environment-friendly agriculture depend on power 
electronics,  integrated  sensors  and  energy-efficient  processors.  Hence,  Austria  needs  to 
further  strengthen  its  research  and  innovation  ecosystem  in  semiconductor  technologies  for 
digitalisation, including components and systems for power management, smart sensing, and 
data processing.  

Digitalisation is a key enabler for the green transition in Austria. A good example would 
be the deployment of a smart bi-directional electric vehicle charging infrastructure based on 
open  European  standards,  to  simultaneously  advance  in  renewables  and  avoid  fragmented 
proprietary  solutions  between  regions  or EU countries. Digitalisation of transport is  another 
promising area for Austria to tap its strengths in key digital enablers (microelectronics, AI, 5G 
connectivity) for the green transformation of mobility systems. Innovation procurement is key 
for  the  digital-green  economic  recovery,  as  it  determines  the  pace  of  public  sector 
modernisation, reinforces industrial competitiveness and increases private sector investments 
in strategic technologies.  

Graph 2.3.2. Digital Economy and Society Index (DESI) composite index summary 

Note: EU aggregate corresponds to EU28, based on 2020 DESI report  

19 

 
 
 
 
 
Box 2.3.2: Progress towards the Sustainable Development Goals (SDGs) 

The  objectives  of  the  Sustainable  Development  Goals  are  integrated  in  the  European 
Semester since the 2020 cycle. This provides a strong commitment towards sustainability in 
coordination  of  economic  and  employment  policies  in  the  EU.  In  that  respect,  this box 
outlines Austria’s  performance  with  respect  to  SDGs  with particular  relevance for  the  four 
dimensions underpinning the 2021 Annual  Sustainable Growth Strategy and of relevance to 
the recovery and resilience plans (green transition, fairness, digital transition and productivity, 
and macroeconomic stability), indicating possible areas where investments and reforms in line 
with the objectives of the Facility could further accelerate the progress on the SDGs.  

Figure 2.3.2: SDGs and key dimensions of the recovery and resilience plan 

Green transition  
While Austria performs well on several SDG indictors related to the green transition, it still 
needs  to  catch  up  on  others.  Austria  is  working  towards  its  climate  targets  and  reducing 
greenhouse gas emissions in some sectors, but there are still some challenges ahead. Between 
2014 and 2019, final energy consumption per capita slightly increased from 3.1 to 3.2 tonnes 

20 

 
 
 
 
 
  
 
in  Austria remain above the  EU-27 

of oil equivalent, which is about 50% higher the EU-27 average of 2.2t. Likewise, per capita 
emissions 
average. Domestic Transport-related 
greenhouse gas emissions rose by 9.3% from 2010 to 2019 and industrial processes by 5.2%, 
while  there  were  reductions  in  other  sectors,  such  as  in  waste  management  (-37.4),  energy 
supply  (-27,4)  and  other  energy  use  (e.g. buildings,  -21.1%). Although  accounting  for  only 
3.4%  of  all  emissions, it is noteworthy that  international  aviation  increased by 36% over  the 
same  period. Reductions  in  GHG  emissions  linked  to  transport  and  buildings  are  key  to 
targets.  On  SDG  12  (responsible  production 
Austria  achieving 
and consumption),  the  environmental  goods  and  services  sector  saw  strong,  above-EU 
average growth; however, also the generation of waste per capita increased slightly between 
2014 and 2018. Austria is a frontrunner in the EU with its proportion of land used for organic 
farming.  Compared  with  other  EU  countries,  the  proportion  of  organically  farmed  land  in 
Austria (25.3%) is several times higher than the EU-28 average of 8.5%.  

its  2030  climate 

indicators  assessing 

Fairness  
the  fairness  of  society  and 
Austria  generally  ranks  high  on 
economy. Austria  is  successfully  tackling  poverty:  the  rate  of  people  at  risk  of  poverty  and 
social exclusion fell from 19.2% in 2014 to 16.9% in 2019. This is significantly lower than 
the EU average. Austria reduced its avoidable mortality by 7% between 2012 and 2017. On 
‘quality  in  education’,  Austria  has  increased  participation  in  early  childhood  education  and 
care  (for 3-  to  5-year-olds),  has  steadily  increased  the  tertiary  education  rate  and  lies  well 
above  the  EU  average  in  lifelong  learning  and  the  employability  index.  However,  there  is 
room  for  improvement  in  ensuring  equal  opportunities  in  education. Education  outcomes  of 
young  from  disadvantaged  of  migrant  background  remain  distinctively  lower  and they  drop 
out  of  school  more  often. The  Austrian  gender  pay  gap  has  narrowed  in  recent  years,  but 
women  still  perform  significantly  more  unpaid  work  than  men  (SGD  5).  Drops  in  income 
have had a greater effect on lower incomes than on higher ones. However, the income gap has 
recently narrowed again.  

Digital transition and productivity  
Austria  performs  well  on  ‘Decent  work  and  economic  growth’  (SDG  8)  and  ‘Industry, 
innovation,  and  infrastructure’  (SDG  9).  With  3.19%  of  GDP  allocated  to  R&D  in  2019, 
Austria  has  one  of  the  highest  R&D  spending  in  the  EU,  even  if  this  is  below  the  national 
target  of  3.76%.  The  share  of  employees  in  high-tech  and  medium-high-tech industry rose 
from  2010  to  2018  from  5.3%  to  5.8%.  By  stepping  up  policy  efforts,  Austria  could  make 
further progress on the SDGs related to the digital transition and productivity.  

Macroeconomic stability  
In  addition  to  the  overall  good  performance  on  SDG  8,  Austria  achieves  high  scores  on 
indicators measuring ‘Peace, justice, and strong instructions’ (SDG 16), showing a stable and 
secure environment for pursuing economic activities.  

3. OBJECTIVES, STRUCTURE AND GOVERNANCE OF THE PLAN 

3.1 Overall strategy of the plan 

The Austrian recovery and resilience plan is expected to address the twin transition and 
has a clear focus on inclusive growth. The Austrian plan helps address economic, social and 
ecological  weaknesses  and  challenges,  with  a  clear  emphasis  on  climate  protection  and 
digitalisation.  Austria  invests  in  boosting  the  economy,  supporting  sustainability,  improving 

21 

 
 
 
 
 
 
the  outcomes  of  education  and  its  business  environment.  The  additional  funds  and  new 
reforms  will  complement  the  already  implemented  economic  recovery  programmes  and 
national economic stimulus packages. The Austrian recovery and resilience plan includes both 
new investments and prolongation of existing programmes with additional funding.  

The  Austrian  recovery  and  resilience  plan  is  organised  around  four  components: 
1 Sustainable  recovery,  2  Digital  recovery,  3  Knowledge-based  recovery,  and  4  Just 
recovery.  Each  of  these  components  contains  four  subcomponents,  for  a  total  of  sixteen 
subcomponents. The plan comprises 27 reform and 32 investment measures. 

The  first  component,  Sustainable  recovery,  comprises  measures  to  support  Austria’s 
green  transition.  The  component  addresses  structural  issues  related  to  sustainability  and 
enables  investments  to  facilitate  reducing  GHG  emissions  in  line  with  the  European  and 
Austria’s specific climate targets. Additionally, investments in the green transition contribute 
positively to the economic recovery by increasing economic growth and employment.  

  Subcomponent 1.A Renovation wave contains a reform measure ‘Renewable Heat Act’, 
and  two  investments,  ‘Promoting  the  exchange  of  oil  and  gas  heating  systems’  with  a 
focus on reducing the use of fossil resources for heating purposes and ‘Combating energy 
poverty’  seeking  to  minimise  the  social  cost  of  green  policies.  They  all  promote  the 
transition  to  more  sustainable  heating,  while  supporting  low-income  households  in  this 
transition in order to strengthen social cohesion. 

  Subcomponent  1.B  Eco-friendly  mobility  contains 

the  ‘Mobility 
Masterplan’ and the ‘1, 2, 3 Ticket’ with the objective to harmonise the tariff system of 
public transport in Austria and make it more affordable. The subcomponent also includes 
three  investments:  ‘Promoting  zero-emission  buses,  infrastructure’,  ‘Promotion  of  zero-
emission  vehicles  and  infrastructure’,  and  ‘Construction  of  new  railway  lines  and 
electrification of regional railways’.  

two  reforms, 

  Subcomponent  1.C  Biodiversity  and  circular  economy  contains  a  reform  ‘Legal 
framework  to  increase  collection  rates  for  plastic  beverage  packaging  and  the  supply  of 
reusable containers in the food retail sector’ and four investments in biodiversity and the 
circular  economy:  ‘Biodiversity  Fund’,  ‘Investments  in  empty  take-back  systems  and 
measures to increase re-usage rates for beverage containers’, ‘Installation and retrofitting 
of sorting facilities’, and ‘Support for the repair of electrical and electronic equipment’.  
  Subcomponent  1.D  Transformation  towards  climate  neutrality  consists  of  a  reform 
‘Renewables  Expansion  Law’  and  an  investment  measure  ‘Transforming  industry  into 
climate neutrality’. 

The  second  component,  Digital  recovery,  addresses  challenges  related  to  connectivity, 
with a view to strengthening competitiveness  as well as social cohesion.  The component 
seeks to speed up the deployment of broadband, addresses the needs for further digitalisation 
of the public administration, incentivises digital  and green investments in the private sector, 
and  addresses  challenges  in  access  to  digital  equipment  in  the  education  system.  The 
component takes into account that the need to address these challenges has accelerated during 
the COVID-19 crisis.  

  Subcomponent  2.A  Broadband  expansion  contains  a  reform  measure,  ‘Creation  of  the 
Internet  Infrastructure  Austria  2030  Platform  (PIA  2030)’,  and  an  investment,  ‘Gigabit 

22 

 
 
enabled  access  networks  and  symmetric  Gigabit  connectivity  in  areas  with  particular 
socio-economic priorities’.  

  Subcomponent 2.B Digitalisation of education consists of the reform measure ‘Fair and 
equal  access  to  basic  digital  skills  for  all  lower  secondary  students’  and  the  investment 
‘Provision of digital terminal equipment for students’.  

  Subcomponent  2.C  Digitalisation  of  the  public  administration  contains  a  reform, 
‘Provision  of  digital  terminal  equipment  for  students’,  and  an  investment  measure, 
‘Digitalisation Fund Public Administration’.  

  Subcomponent 2.D Digitalisation and ecological transformation of businesses consists 
of  three  investment  measures:  ‘Digitalisation  of  SMEs’,  ‘Digital  investments  in 
enterprises’ and ‘Green investments in enterprises’. 

The  third  component,  Knowledge-based  recovery,  consists  of  several  reform  and 
investment  measures  related  to  research,  innovation,  technology,  retraining  and 
upskilling,  as  well  as  education.  All  those  measures  aim  to  prepare  the  economy  and  the 
people in the labour market and in the education system for the challenges of the future.  

  Subcomponent 3.A Research contains a reform measure, the ‘Research, Technology and 
Innovation Strategy 2030’, and three investment measures for the sustainable development 
of  universities  in  the  context  of  digitalisation:  ‘Quantum  Austria  —  Promotion  of 
Quantum Sciences’, the ‘Austrian Institute of Precision Medicine’ and (digital) ‘Research 
Infrastructures’.  

  Subcomponent 3.B Re-skilling and up-skilling consists of the reform measure ‘education 
bonus’  aiming  at  incentivising  training  for  unemployed  and  the  investment  measure 
‘Funding for reskilling and upskilling.’  

  Subcomponent 3.C Education contains a reform measure ‘Improving access to education’ 
and  two  investments:  ‘Remedial  education  package’  and  ‘Development  of  elementary 
education’.  

  Subcomponent  3.D  Strategic  innovation  contains  two  planned  Important  Projects  of 
Common  European  Interest  (IPCEI),  one  on  ‘Microelectronics  and  connectivity’  and 
another one on ‘Hydrogen’.  

The  fourth  component,  Just  recovery,  addresses  the  intertwined  challenges  related  to 
social  cohesion  and  the  ageing  of  society,  supports  arts  and  culture  and  improves 
Austria’s governance and administrative procedures. The reforms and investments in this 
component focus on challenges related to the health and long-term care sector, as well as on 
municipalities. In addition, the cultural sector, particularly hard hit by the COVID-19 crisis, is 
supported  by  targeted  reforms  and  investments.  The  component  also  contains  a  number  of 
additional reform measures, which support and reinforce the overall objectives of the Austrian 
recovery and resilience plan.  

  Subcomponent  4.A  Health  contains  the  reform  measure  ‘Making  primary  care  more 
attractive’. The investments in this subcomponent are related to the ‘Support for primary 
health  care  centre  projects’,  ‘Development  of  the  electronic  mother-child  passport 
platform  including  the  interfaces  to  the  early  aid  networks’,  the  ‘National  roll-out  of 
“early  aid”  for  socially  disadvantaged  pregnant  women,  their  young  children  and 
families’.  

23 

 
 
  Subcomponent  4.B  Resilient  municipalities  contains  two  reform  measures:  a  new  ‘Soil 
Strategy’  and  a  ‘Reform  to  further  develop  care  provision’.  It  includes  investments  on 
‘Climate-fit town centres’ and ‘Investment for the implementation of community nursing’. 
  Subcomponent  4.C Arts and culture contains two reform  elements: ‘Development  of a 
building culture programme’ and ‘Development of a national strategy for digitalisation of 
cultural  heritage’.  Additionally,  it  includes  three  investments:  ‘Rehabilitation  of  the 
Vienna  Volkskundemuseum  and  the  Prater  Ateliers’,  ‘Digitalisation  wave  for  cultural 
heritage’ and ‘Investment fund for climate-friendly cultural enterprises’.  

  Subcomponent  4.D  Resilience  through  reforms  contains  several  additional  reform 
measures. They range from the development of governance in climate action to addressing 
the problem of a lack of multi-level governance, the implementation of CO2 pricing in the 
context  of  the  eco-social  tax  reform,  the  establishment  of  a  new  legal  form  (‘Austrian 
Limited’)  to  support  growth-oriented  start-ups  and  the  facilitation  of  administrative 
procedures. The reforms will help create an appropriate framework for Austria’s recovery. 

Table 3.1a: Overview of the plan: components and associated cost 

Component 

1 Sustainable recovery  

1.A Renovation wave 

1.B Eco-friendly mobility 

1.C Biodiversity and circular economy 

1.D Transformation to climate neutrality 

2 Digital recovery 

2.A Broadband expansion 

2.B Digitalisation of education 

2.C Digitalisation of the public administration 

2.D Digitalisation and ecological transformation of businesses 

3 Knowledge-based recovery  

3.A Research 

3.B Re-skilling and up-skilling 

3.C Education 

3.D Strategic innovation 

4 Just recovery 

4.A Health 

4.B Resilient municipalities  

4.C Arts and culture 

4.D Resilience through reforms 

24 

Costs (EUR million) 

209 

849 

350 

100 

891 

172 

160 

605 

212 

277 

129 

250 

125 

104 

67 

0 

 
 
 
 
 
 
 
The milestones and targets are concentrated at the beginning, in the middle and at the 
end of the lifetime of the facility. Overall, the distribution of milestones and targets reflects 
the  lifecycle  of  the  investments  and  reforms  and  allows  to  verify  that  the  objectives  of  the 
components  are  achieved.  The  highest  number  of  milestones  and  targets  are  at  the  end  of 
2021/beginning  of  2022,  at  the  end  of  2023  and  in  the  second  quarter  of  2026.  While  the 
milestones for the reforms are concentrated in the first half of the duration of the Facility, as 
they  have  also  the  function  for  setting  framework  conditions,  the  implementation  of  the 
investments continues until the end of the duration of the Facility.  

Table 3.1b: Distribution of milestones and targets per year in the recovery and resilience plan of 
Austria  

25

20

15

10

5

0

180

160

140

120

100

80

60

40

20

0

Milestones and targets

Cumulative M&T

3.2 Implementation aspects of the plan 

The  Austrian  recovery  and  resilience  plan  makes  explicit  reference  to  the  consistency 
with other programmes. The Austrian plan entails reform and investment measures that are 
proportionate  to  the  allocation  of  non-repayable  financial  support  to  Austria.  The  plan 
highlights that the reform and investment measures are complementary to the further reforms 
and  investments  of  the  national  reform  programme.  The  relevant  reform  and  investment 
measures are aligned with the National Energy and Climate Plan (NECP) and contribute to its 
implementation.  In addition,  the plan is  coordinated with  the negotiations of the partnership 
agreements and operational programmes under the Union funds for the funding period 2021-
2027,  to  ensure  complementarity  and  synergies.  The  Austrian  recovery  and  resilience  plan 
seem  furthermore  consistent  with  the  objectives  of  the  Youth  Guarantee  and  the  draft 
territorial Just Transition plans. Sectorial support to policy reforms could be provided by the 
Horizon Policy Support Facility that may complement the Technical Support Instrument. The 
concrete points of reference are included in the description of the subcomponents. Austria’s 

25 

 
 
 
 
plan explicitly states that the selected reform and investment measures are consistent with the 
challenges and priorities identified in the most recent euro area recommendations18.  

The Ministry of Finance is responsible for the coordination of the implementation of the 
plan. The relevant line Ministries are responsible for the implementation of the reforms and 
investments falling into their areas of expertise and for compliance with the requirements of 
the  RRF.  The  implementing  bodies  (responsible  line  Ministries)  have  drawn  up  individual 
control plans. The implementing bodies report to the Ministry of Finance the achievement of 
milestones and targets and flag if any delays in the achievement are expected. The Ministry of 
Finance  reports  on  a  semi-annual  basis  the  achievements  on  milestones  and  targets  to  the 
Commission, in April, along with the submission of the National Reform Programme and in 
October, along with the submission of the Draft Budgetary Plan. The Ministry of Finance also 
signs the management declaration accompanying any payment request under the RRF. 

The  Austrian  recovery  and  resilience  plan  contains  a  dedicated  chapter  on  gender 
equality and equal opportunities for all. This chapter acknowledges that crises, such as the 
COVID-19 pandemic, reinforce challenges related to gender equality and equal opportunities 
for all and provides a short overview of how the different reform and investment measures of 
the plan also address challenges related to gender equality and equal opportunities. The first 
component, Sustainable recovery, includes measures to address energy poverty and to enable 
people  with  lower  household  income  to  participate  in  the  green  transition.  In  addition,  the 
expansion of affordable public transport is beneficial to households with lower income and to 
women,  who  tend  to  use  public  transport  to  a  larger  extent  than  men.  For  the  second 
component,  Digital  recovery,  the  expansion  of  broadband  access  aims  at  improving  the 
territorial  and  social  cohesion,  while  also  increasing  the  overall  competitiveness  and 
improving the work-life balance by facilitating telework. The distribution of digital devices to 
all  pupils  in  the  lower  secondary  education  helps  improve  equal  opportunities  in  education. 
For the third component, Knowledge-based recovery, the included up- and reskilling measures 
focus on women and people from disadvantaged groups. The ‘Remedial  education package’ 
supports  disadvantaged  pupils  in  catching  up  on  the  course  content  that  they  may  not  have 
been  able  to  cover  fully  during  the  prolonged  periods  of  distance  learning.  The  increased 
support  in  elementary  education  should  also  be  particularly  beneficial  for  children  from 
disadvantaged socio-economic backgrounds. The investment and reforms relating to research, 
technology  and  innovation  focus  on  increasing  the  share  of  women  working  in  these  areas. 
The  fourth  component,  Just  recovery,  includes  a  broad  range  of  measures,  which  are 
particularly beneficial for women. Reforms and investments relating to health and long-term 
care  seek  to  strengthen  the  social  cohesion  and  contribute  to  improving  the  situation  of 
women  on  the  labour  market.  Pension  splitting  and  measures  to  increase  the  effective 
retirement  age  should  contribute  to  increasing  the  pensions  of  women,  notably  at  the  lower 
end, and therefore help reduce the gender pension gap.  

18  Pending  final  adoption  by  the  Council,  after  endorsement  by  the  European  Council.  The  text  agreed  by  the 
Eurogroup on 16 December 2020 is available at: https://data.consilium.europa.eu/doc/document/ST-14356-2020-
INIT/en/pdf 

26 

 
 
                                                           
 
The  Austrian  recovery  and  resilience  plan  reports  on  a  comprehensive  consultation 
process that took place ahead of the design of the plan. The consultation process included 
the  Länder,  cities,  municipalities,  social  partners,  NGOs,  youth  organisations  and  other 
relevant representatives of civil society. These were invited to submit their project proposals 
in advance. Overall, the Austrian government  received project proposals  amounting to EUR 
56  billion  and  some  of  these  proposals  have  been  taken  up  in  the  plan.  Some  measures 
proposed by the Länder and municipalities have been included in the plan, notably investment 
support  measures  and  measures  in  education,  both  contributing  to  social  and  territorial 
cohesion. The plan states that the measures related to the labour market incorporate inputs and 
suggestions from the social partners. The dedicated subchapter 4.6 ‘Consultations carried out’ 
(Erfolgte  Konsultation)  suggests  that  a  large  part  of  the  measures  included  in  the  plan  is 
supported by one or more of the relevant actors included in the consultation process.  

The plan lists two planned IPCEIs, one in the area of microelectronic and connectivity 
and one on hydrogen, as relevant multi-country projects and contains a brief description of 
the  required  coordination  steps  across  participating  Member  States.  Through  the  project  on 
microelectronics and  connectivity, areas such as low power electronics,  sensors and process 
technologies  will  be  strengthened.  The  project  on  building  a  European  hydrogen  ecosystem 
will  support  hydrogen  production,  storage  and  applications  in  particular  in  energy-intensive 
industrial and mobility sectors that are difficult to decarbonise and aims to contribute to EU’s 
climate objectives. 

The  plan  contains  a  communication  strategy  to  emphasise  the  contribution  of  the 
European  Union  to  the  green  and  digital  transformation  of  the  Austrian  society  and 
economy. The communication strategy will highlight the contribution towards increasing the 
innovation  potential  and  the  education  and  qualification  levels  of  all  citizens,  notably  the 
younger generations. It will seek to raise the awareness of the population relating to the plan 
and  the  included  measures  including  the  financing  by  the  European  Union  that  should  be 
made evident  at all relevant  levels.  Furthermore, the  communication related to  the recovery 
and  resilience  plan  should  involve  the  parliament  and  relevant  stakeholders  to  ensure 
ownership. The target groups of the communication strategy are the general public, potential 
beneficiaries, implementing bodies, media, as well as social partners and the parliament. The 
communication  strategy  is  structured  around  a  central  website  and  supported  by  dedicated 
communication channels for the specific target groups. Press releases, press conferences and 
dedicated press meetings in close cooperation with the representation of the European Union 
in  Austria  will  form  the  base  of  the  communication  strategy.  To  reach  out  to  the  general 
public,  Austria  will  use existing  communication projects  of  the  European  Union,  as  well  as 
the  dialogues  in  Austria  through  the  Conference  on  the  Future  of  Europe.  The  flagship 
initiatives  will  be  promoted  by  dedicated  communication  activities.  At  project  level,  the 
existing standards on publicity and communication related to EU funding will be applied. The 
achievement of the objectives related to communication are going to be measured in number 
of accesses to the website and through the reception of the plan in the media.  

A security self-assessment for investments in connectivity and digital capacities has not 
been provided as it has not been considered appropriate by Austria, in accordance with 
Article 18(4) point (g) of Regulation (EU) 2021/241. The relevant connectivity measures do 
not entail active components and the rollout of broadband does not include 5G deployment. In 
addition,  according  to  information  provided  by  Austria,  the  digitalisation  of  the  public 
administration will be carried out in full respect of the relevant EU directive and national rules 

27 

 
 
and regulations. As such, the envisaged IT consolidation in the federal government intends to 
use the latest security technologies to increase the level of security. 

State aid and competition rules fully apply to the measures funded by the Recovery and 
Resilience  Facility.  Union  funds  channelled  through  the  authorities  of  Member  States,  like 
the RRF funds, become State resources and can constitute State aid if all the other criteria of 
Article  107(1)  TFEU  are  met.  When  this  is  the  case  and  State  aid  is  present,  the  relevant 
measures must be notified and approved by the Commission before Member States can grant 
the  aid,  unless  those  measures  are  covered  by  an  existing  aid  scheme  or  comply  with  the 
applicable  conditions  of  a  block  exemption  regulation,  in  particular  the  General  Block 
Exemption  Regulation  (GBER)  declaring  certain  categories  of  aid  compatible  with  the 
internal market in application of Articles 107 and 108 TFEU19. When State aid is present and 
it requires notification, it is the duty of the Member State to notify State aid measures to the 
Commission before granting them, in compliance with Article 108(3) TFEU. In this respect, 
the  State  aid  analysis  carried  out  by  Austria  in  the  recovery  and  resilience  plan  cannot  be 
deemed  a  State  aid  notification.  In  so  far  as  Austria  considers  that  a  specific  measure 
contained in the recovery and resilience plan entails de minimis aid or aid exempted from the 
notification requirement, it is the responsibility of Austria to ensure full compliance with the 
applicable  rules.  In  addition  to  complying  with  EU’s  State  aid  rules,  measures  taken  under 
this  framework  should  be  compatible  with  the  EU’s  international  obligations,  in  particular 
under World Trade Organization rules. 

4. SUMMARY OF THE ASSESSMENT OF THE PLAN 

4.1  Comprehensive  and  adequately  balanced  response  to  the  economic  and  social 

situation  

The  recovery  and  resilience  plan  provides  for  a  comprehensive  set  of  measures  that 
effectively addresses all six pillars referred to in Article 3 of the RRF Regulation, taking 
into account the country-specific challenges. The reforms and investments  will contribute 
to a sustainable recovery and tackle the adverse effects and consequences of the COVID-19 
crisis in Austria. While the reforms will strengthen the economic and institutional resilience, 
the  investments  are  focused  on  forward-looking  areas  and  will,  in  particular,  advance  the 
green  and  digital  transition  of  both  the  public  and  private  sphere.  Austria  submitted  its 
National  Reform  Programme  on  30  April  2021.  The  information  provided  in  the  National 
Reform Programme is being considered and jointly assessed in this Staff Working Document 
together with the recovery and resilience plan. 

The measures covering the green and digital dimension account for the biggest financial 
allocation  and  go  beyond  the  minimum  targets  of  37%  and  20%.  In  particular,  climate-
relevant  measures  amount  to  58.7%  and  digital  measures  to  52.8%  of  the  total  financial 
allocation under the RRF to Austria’s plan. As such, the Austrian plan is concentrated on the 
first two pillars. The following table illustrates the coverage of all six pillars. 

Table  4.1:  Coverage  of  the  six  pillars  of  the  Facility  by  the  Austrian  recovery  and 
resilience plan components 

19 Commission Regulation 651/2014, OJ L 187, 26.6.2014, p. 1. 

28 

 
 
                                                           
Green 
transition 

Digital 
transition 

Smart, 
sustainable 
and 
inclusive 
growth 

Social and 
territorial 
cohesion 

Health, and 
economic, 
social 
institutional 
resilience 

Policies for 
the next 
generation 

Component 1 Sustainable recovery 

1.A Renovation 
wave 

1.B Eco-friendly 
mobility 

1.C Biodiversity and 
circular economy 

1.D Transformation 
towards climate 
neutrality 

● 

● 

● 

● 

Component 2 Digital recovery 

2.A Broadband 
expansion 

2.B Digitalisation of 
schools 

2.C Digitalisation of 
the public 
administration 

2.D Digital and 
ecological 
transformation of 
enterprises 

● 

● 

● 

● 

● 

Component 3 Knowledge-based recovery 

3.A Research 

3.B Re-skilling and 
up-skilling 

3.C Education 

3.D Strategic 
innovation 

● 

Component 4 Just recovery 

4.A Health care 

4.B Resilient 
municipalities 

4.C Art and culture 

4.D Resilience 
through reforms 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

29 

● 

● 

● 

● 

● 

● 

● 

● 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Green transition 

Austria’s recovery and resilience plan puts the main focus on measures supporting the 
green transition. Whilst component 1 amounting to EUR 1.5 billion is entirely dedicated to 
sustainability,  the  three  remaining  components  of  the  plan  also  contain  climate-relevant 
measures. Overall, the recovery and resilience plan comprises measures accounting for EUR 
2 031 200 000  contributing  to  the  green  transition,  representing  58.7%  of  Austria’s  total 
financial allocation under the RRF.  

Under the first component, the recovery and resilience plan allocates EUR 209 million to 
thermal renovation and energy efficiency of residential buildings, addressing also energy 
poverty.  The  buildings  sector  (residential  and  commercial  buildings)  generated  GHG 
emissions equivalent to 8.3 million tons of CO2 (around 10% of the total emissions) in 2017. 
Even  though  GHG  emissions  from  buildings  have  decreased  over  the  past  decades,  there  is 
still great savings potential in this sector20. 

Reducing transport-related emissions is key for Austria’s shift to carbon neutrality and 
for  meeting  air  quality  standards.  Between  1990  and  2017,  greenhouse  gas  (GHG) 
emissions  from  transport  increased  by  almost  80%.  Investment  enhancing  eco-friendly 
mobility,  including  railway  infrastructure,  zero-emission  vehicles  and  charging  stations, 
represents  the  second-largest  subcomponent  of  the  recovery  and  resilience  plan  (EUR  849 
million).  

The  recovery  and  resilience  plan  proposes  significant  investment  in  the  protection  of 
biodiversity and transition to a circular economy (EUR 350 million), aiming to improve, 
preserve  and  restore  biodiversity,  prevent  waste  and  promote  repair  and  recycling.  These 
investments  will  help  address  the  low  plastic  packaging  recycling  rate.  They  will  also  help 
protect  Austria’s  richness  in  biodiversity  and  natural  carbon  sinks,  contributing  to  the 
objectives of the EU’s 2030 Biodiversity Strategy.  

The  recovery  and  resilience  plan  includes  investments  in  decarbonisation  of  industry 
(EUR  100  million)  and  enhanced  the  support  to  a  planned  Important  Project  of 
Common  European  interest  (IPCEI)  on  renewable  hydrogen  (EUR  125  million)  under 
component  3.  Austria  has  a  strong  industrial  base,  hence  industry  (including  installations 
covered by the EU emissions trading system – ETS) is the largest emitting sector in Austria. 
These  investments  will  accelerate  emissions  abatement  and  the  uptake  of  advanced  eco-
innovation and circularity in energy-intensive sectors, while also developing the potential of 
hydrogen for industrial and e-mobility transformation. 

The energy efficiency and climate adaptation measures under component 1 are further 
complemented by support for green investment by enterprises (EUR 504 million), including 
energy  saving  renovations  and  e-mobility,  proposed  under  component  2.  Component  4  also 
promotes  the  use  of  renewable  energy,  resource  efficiency  and  climate  adaptation  by 

20 Zangheri, P., Armani, R., Kakoulaki, G., Bavetta, M., Martirano, G., Pignatelli, F. and Baranzelli, C., Building 
energy  renovation  for  decarbonisation  and  Covid-19  recovery,  EUR  30433  EN,  Publications  Office  of  the 
European Union, Luxembourg, 2020, ISBN 978-92-76-24766-1, doi:10.2760/08629, JRC122143. 

30 

 
 
                                                           
supporting  enterprises  in  the  cultural  sector  (EUR  15  million),  which  was  hard-hit  by  the 
COVID19-crisis.  Similarly,  it  will  also  strengthen  the  resilience  of  municipalities  through 
green renovations and energy efficiency of public buildings and climate adaptation measures 
in town centres (EUR 50 million). 

All  investment  measures  contribute  effectively  and  in  a  balanced  manner  to  Austria’s 
green  transition,  whereas  the  structural  reforms  proposed  in  Austria’s  recovery  and 
resilience plan will  amplify their lasting impact.  For instance, the investments  in  thermal 
renovations  and  energy  transition  will  be  reinforced  by  a  modernisation  of  national  support 
schemes  for  renewable  energy  and  a  new  regulatory  framework  for  renewable  heating. 
Investment in clean mobility will be underpinned by a Mobility Masterplan 2030 and a reform 
incentivising the modal shift towards public transport. Investment in more effective recycling 
will  be  accompanied  by  an  amendment  of  the  waste  management  law.  Protection  of 
biodiversity  will  benefit  from  a  new  soil  protection  strategy  tackling  intensive  land-use. 
Finally, all green measures are envisaged to be directly or indirectly fostered by a new climate 
governance framework and the planned eco-social tax reform that will be designed to reduce 
annual CO2 emissions by at least 2.6 million tons by 2030. 

Digital transformation 

The  recovery  and  resilience  plan  contributes  to  Austria’s  digital  transformation.  A 
substantial amount of investments contributes to digital objectives – EUR 1.8 billion or 52.8% 
of Austria’s total financial allocation under the RRF. The largest share of investments towards 
digital transformation (for an amount of EUR 1.3 billion) are found in  component 2  Digital 
recovery,  although  important  digital-related  measures  are  also  contained  in  component  3 
Knowledge-based recovery and component 4 Just recovery. The investments are strengthened 
by reforms to ensure a long-lasting impact. The envisaged reforms and investments promote 
digital transformation in a variety of areas, including connectivity, public administration and 
public services, private sector, education, research and innovation, health and culture.  

The  recovery  and  resilience  will  plan  help  enhance  connectivity  as  the  linchpin 
infrastructure for digital transformation. While Austria performs well in the roll-out of 5G 
networks, it scores below the EU average for fixed very high-speed broadband coverage and 
take-up.  The  investment  in  the  deployment  of  Gigabit-capable  broadband  network,  which 
accounts  for  the  largest  share  of  the  digital-related  expenditure  under  the  recovery  and 
resilience plan (EUR 891 million), is expected to help address this challenge. The investment 
is  underpinned  by  a  reform  to  facilitate  broadband  deployment,  in  particular  by  ensuring 
coordination between all stakeholders and reducing red tape. This reform and investment, in 
addition  to  providing the infrastructure  for the digital  transformation,  contribute to  ensuring 
equal  opportunities  between urban and rural  areas.  These initiatives are in line with the key 
action  ‘Accelerating  investments  in  Europe’s  Gigabit  connectivity’  under  the  Commission 
Communication on Shaping Europe’s Digital Future21. 

The recovery and resilience plan promotes digital transformation both in the public and 
private sectors. The envisaged measures for the digitalisation of the public administration are 
aimed at increasing the efficiency and effectiveness of the federal administration and result in 

21 Communication from the Commission to the European Parliament, the Council, the European Economic and 
Social Committee and the Committee of the Regions Shaping Europe's digital future (COM/2020/67 final). 

31 

 
 
                                                           
new  digital  services  for  citizens  and  businesses.  The  financing  of  the  projects  will  be 
complemented by a reform to implement the once-only principle when dealing with the public 
authorities, which is expected to reduce the administrative burden on citizens and businesses. 
Specific investments are also envisaged to facilitate digitalisation of companies. In particular, 
the  recovery  and  resilience  plan  contains  targeted  investments  to  help  SMEs  adopt  digital 
technologies, which has proven to be a bottleneck for productivity growth. Also, the recovery 
and  resilience  plan  includes  an  investment  premium  of  14%  for  all  companies  investing  in 
certain  digital  technologies,  notably  advanced  ones,  which  will  increase  companies’ 
competitiveness and resilience. 

The recovery and resilience plan also focuses on the development of human capital as a 
key enabler for the digital economy. The plan includes a reform and investment to provide 
access  to  digital  education  and  to  digital  equipment  for  students  and  to  support  the 
digitalisation of teaching practices of lower secondary schools. The measures will contribute 
to  addressing  the  challenges  Austria  faces  with  the  development  of  digital  skills,  digital 
inclusion, and ensuring access to quality education and equal opportunities. Moreover, for the 
adult population, the recovery and resilience plan contains measures to facilitate reskilling and 
upskilling, which include a strong focus on developing basic IT skills and IT skills in specific 
occupational fields. 

A  number  of  measures  under  component  3  are  aimed  at  promoting  digital-related 
research and development (R&D). In particular, the planned IPCEI on microelectronics and 
connectivity  aims  at  supporting  the  development  of  future  innovative  network  and 
microelectronics 
the  combination  of 
functionalities and materials, contributing to Europe’s open strategic autonomy in the global 
supply chains for microelectronics. In addition, a number of measures are targeted at further 
developing  quantum  research,  life  sciences  and  digital  infrastructures,  which  is  expected  to 
boost  the  competitiveness,  foster  research  and  innovation,  and  support  Europe  in  ensuring 
technology sovereignty. 

technologies  based  on  smaller  structures  and 

The  recovery  and  resilience  plan  will  also  contribute  to  the  digitalisation  of  health 
services  and  culture  in  Austria.  The  development  of  the  electronic  mother-child  passport 
will  improve  health  opportunities  for  pregnant  and  breastfeeding  women  and  their  children 
and  will  promote  accessibility  of  health  services.  Moreover,  the  plan  supports  the 
digitalisation  of  cultural  heritage,  making  it  available  to  a  wider  public,  including  for 
educational purposes. 

Overall,  the  scope  of  Austria’s  recovery  and  resilience  plan  encompasses  a  significant 
number of digital-related measures targeted at various areas, with the digital contribution of 
the planned investments exceeding the minimum threshold set by the Regulation.  

Smart, sustainable and inclusive growth 

The plan extensively covers the third pillar on smart, sustainable and inclusive growth. 
All  components  contain elements  aiming to  strengthen the competitiveness and productivity 
of Austria’s economy. 

Component  1  will  promote  sustainable  growth,  in  particular.  The  measures  in  this 
component aim to support the shift towards sustainable mobility and will increase the number 
of zero-emission vehicles in Austria. Moreover, they will support the transition from a linear 

32 

 
 
to  a  circular  economy  and  aim  to  transform  the  industry  towards  climate  neutrality.  These 
measures  will have a long-lasting impact,  ensuring the competitiveness  of the economy  and 
creating jobs. 

Component  2  includes  a  set  of  measures  targeted  at  SMEs.  They  will  enhance  the 
digitalisation  of  SMEs  and  will  promote  investments  on  greening  of  businesses.  This  will 
prepare  the  ground  for  structural  changes  towards  a  sustainable  economy  and  strengthen 
future-oriented areas. 

Component 3 covers measures to strengthen research and innovation. This will enhance 
the  growth  potential  and  entrepreneurship.  At  the  same  time,  the  investments  will  promote 
cross-border cooperation in important strategic areas and bring added value on the European 
level, in line with the Commission’s New Industrial Strategy. 

Component 4 helps  address  the needs of businesses in the area of art and culture. The 
measures  in  this  component  aim  to  strengthen  the  resilience  of  the  cultural  sector  by 
supporting  innovation  and  transformation  towards  sustainability.  In  particular,  they  aim  to 
promote  environmental  and  digital  investments  in  future-oriented  areas,  such  as  circular 
economy. 

The Austrian plan covers a coherent set of reforms and investments to promote smart, 
sustainable and inclusive growth. While focusing on strategically important areas, such as 
research and innovation, the measures will ensure that also SMEs and the cultural sector will 
not be left behind. 

Social and territorial cohesion 

The Austrian recovery and resilience plan covers sufficiently the fourth pillar, as it has 
both  a  strong  social  dimension  and  a  focus  on  Austria’s  regions.  Social  cohesion  is 
expected  to  be  tackled  by  education  measures  targeting  either  disadvantaged  groups  or 
catching  up  generally  with  educational  deficits  caused  by  the  COVID-19  crisis.  As  female 
labour  market  potential  remains  underutilised,  the  envisaged  quantitative  and  qualitative 
improvement  of  early  childhood  education  and  care  facilities  addressed  within  the  recovery 
and  resilience  plan  could  help  increase  full-time  employment  of  women  with  caring 
responsibilities. The roll-out of ‘early aid’ will further support disadvantaged women, children 
and families. Territorial cohesion will likely be fostered by measures linked to renovation of 
buildings,  broadband  and  sustainable  mobility.  More  and  better  primary  health  care  centres 
will also be of benefit for the remote regions, as access to quality health care will be improved 
all over the country. The envisaged reforms (pension splitting, early starter bonus and the eco-
social  tax reform) also  go in  the right  direction. As women still tend to  take care of raising 
children  more  than  men,  they  are  likely  to  have  interrupted  careers  followed  by  lower 
pensions.  The  pension  splitting  will  therefore  contribute  to  narrowing  the  pension  gap 
between  men  and  women  by  sharing  acquired  pension  rights  for  times  of  childcare 
responsibilities. The introduction of the early starter bonus (instead of the Hacklerregelung – 
early  pension  for  specific  professions,  mainly  occupied  by  men)  will  also  contribute  to 
reducing the gender pension gap. 

33 

 
 
Health and economic, social and institutional resilience 

The  Austrian  recovery  and  resilience  plan  covers  sufficiently  the  fifth  pillar  related  to 
resilience.  The  crisis  from  the  COVID-19  pandemic  put  at  the  forefront  the  link  between 
health  systems  and  the  economy.  Strengthening  Austria’s  health  system  and  increasing  the 
focus on primary health care (subcomponent 4.A) is expected to make a strong contribution to 
economic  growth  and  related  job  creation.  A  stronger  and  more  resilient  health  system  will 
equally  be  better  placed  to  absorb  surges  in  healthcare  demand.  In  addition,  the  general 
improvement  of  the  population’s  health  will  translate  into  a  more  productive  labour  force, 
reduced  losses  due  to  absenteeism  and  reduced  constraints  to  socio-economic  activities. 
Social and institutional resilience will be improved by the envisaged pension reforms, which 
will contribute, at least to a certain extent, to dampening the increase of expenditures within 
the pension system and will further contribute to narrowing the gender pension gap. Overall, 
both pension reforms (4.D.2 and 4.D.3) will make the system somewhat more sustainable in 
the medium run. 

Policies for the next generation, children and the youth 

The sixth pillar is duly addressed in the Austrian plan, covering three components with 
a  balanced  mix  of  reforms  and  investments.  The  envisaged  investments  will  allocate 
resources  to  the  education  system  and  will  be  flanked  by  reforms  to  improve  access  to 
education.  A  number  of  measures  under  component  3  aim  to  increase  the  capacities  for 
elementary  education  and  to  bring  some  progress  in  reducing  inequalities  in  educational 
attainment, which is heavily influenced by socio-economic or migrant background. 

Bridging  the  learning  gaps,  which  have  increased  during  the  COVID-19  crisis  due  to 
distance learning, will be key to ensure that no one is left behind. This is reflected in the 
measures Austria has  put  forward to support pupils  with  additional hours, to  complete their 
degrees  and  final  examinations.  In  addition,  pupils  will  receive  IT  equipment  in  order  to 
ensure  that  a  lack  of  financial  means  will  not  lead  to  disadvantages  in  digital  competences. 
During  the  COVID-19  pandemic,  the  importance  of  digitally  well-equipped  schools  and 
pupils  became  apparent  and  underlined  the  need  for  IT  infrastructure.  The  measures  under 
component  2  will  ensure  the  access  to  basic  digital  education  at  lower  secondary  level  and 
aim to create a level playing field for pupils. 

Training  the  next  generation  towards  future-oriented  sectors  will  be  promoted  by 
measures under component 3. The upskilling and reskilling measures in this component aim 
to strengthen the competences of the unemployed and low-skilled, with a particular focus on 
digital  skills.  This  will  enhance  opportunities  for  disadvantaged  groups  and  improve  their 
overall job prospects. By seeking to increase the labour market outcomes for the low-skilled, 
the plan effectively addresses the European Pillar of Social Rights. 

The plan will also contribute to the well-being of pregnant women with measures under 
component  4.  The  introduction  of  the  electronic  mother-child  passport  will  promote 
screening programmes and will provide for an effective electronic platform to improve early 
detection of risk factors and diseases during pregnancy. In addition, a comprehensive package 
on early aid will support disadvantaged pregnant women. These measures will also improve 
the prospects of children. 

34 

 
 
Overall, the plan covers all six pillars, prioritising the green and digital dimensions. The 
strong  focus  on  the  green  pillar  is  driven  by  the  aim  to  reach  climate  neutrality  by  2040, 
without  falling  behind  on  competitiveness  or  economic  growth.  The  measures  falling  under 
this  pillar  will  support  the  green  transition  of  the  Austrian  economy  and  will  have  a  long-
lasting impact, aiming to significantly reduce CO2 emissions. The focus on the digital pillar 
recognises  the  importance  of  digital  competences  and  digitalisation  across  all  areas  of  the 
economy.  The  measures  will  provide  for  the  digital  transformation  of  the  public 
administration and ensure the competitiveness of businesses by making them fit for the digital 
age  and  enhancing  cross-border  cooperation  in  strategically  important  areas.  Considering 
Austria’s economic and social situation, focusing on the first two pillars shows the forward-
looking  approach  of  the  plan  and  represents  a  tailor-made  response  to  country-specific 
challenges. It is also in line with the priorities of the Facility. The plan covers the third pillar 
to a great extent and the measures will promote smart, sustainable and inclusive growth and 
strengthen  Austria’s  competitiveness  and  productivity.  As  regards  the  fourth  pillar,  the 
measures  will  enhance  the  social  and  territorial  cohesion  as  the  plan  entails  a  strong  social 
dimension and focusses on Austria’s regions, while aspects linked to rural areas are to some 
extent directly referred to or considered in a rather implicit way. The fifth pillar is addressed 
with a coherent set of measures that will enhance the resilience of the health care system and 
promote  the  well-being  of  citizens.  The  plan  duly  covers  the  sixth  pillar  with  a  subset  of 
measures to improve the education system. 

Taking into consideration all reforms and investments envisaged by Austria, its recovery 
and  resilience  plan  represents,  to  a  large  extent,  a  comprehensive  and  adequately 
balanced  response  to  the  economic  and  social  situation,  thereby  contributing 
appropriately to all six pillars referred to in Article 3 of the RRF Regulation, taking the 
specific  challenges  and  the  financial  allocation  of  Austria  into  account.  This  would 
warrant a rating of A under the assessment criterion 2.1 in Annex V to the RRF Regulation. 

4.2 Link with country-specific recommendations and the European Semester  

The Austrian recovery and resilience plan is expected to address a significant subset of 
the challenges identified in the relevant country-specific recommendations. The proposed 
reforms and investments are an ambitious response to a large set of challenges faced by the 
Austrian economy. The plan includes important steps for an eco-social tax reform, including a 
target  for  reduction  of  CO2  emissions,  and  reforms  to  address  challenges  in  the  pension 
system  and  in  the  labour  market,  particularly  for  long-term  unemployed.  The  plan  includes 
several reform and investment measures that enable the green and digital transition, and just 
improve research and innovation, health, long-term care, childcare facilities, and education. In 
addition,  the  plan  also  includes  important  reforms  to  improve  access  to  finance  and  the 
business environment.  

35 

 
 
 
 
Table 4.2: Mapping of country challenges identified in 2019-20 country-specific 
recommendations and Austria’s RRP components  

Sub-
Component 

1
A 

1
B 

1
C 

1
D 

2
A 

2
B 

2
C 

2
D 

3
A 

3
B 

3
C 

3
D 

4
A 

4
B 

4
C 

4
D 

Country 
challenges 
Comprehensive 
tax reforms  
Unemployment 
and female 
labour market 
participation 
R&D 
investments for  
innovation 
Reduce 
administrative 
and regulatory 
burden on 
firms  
Resilience 
of 
the  health  care 
system  
Fiscal 
sustainability 
(health, 
risks 
pensions,  long-
term care) 
Digital 
transition 

Greenhouse gas 
emission 
and 
climate 
neutrality 

Educational 
system 

Fiscal 
federalism  

CSRs 2019-
2020 
2019. 2 (1) 
2020. 4  
2019. 2 (2, 3) 

2019. 3 (1) 
2020. 3 (5) 

2019. 3 (5)  
2020. 3 (2) 

2020. 1 (2) 

2019. 1 (1, 2, 3) 

2019. 3 (2) 
2020. 3 (5)  
2020. 2 (2) 

2019. 3 (3) 
2020. 3 (6, 7) 

2019. 2 (3)  
2020. 2 (1, 2) 

2019. 1 (4)  

●  ○ 

● 

● 

● 

● 

● 

○ 

● 

○  ○ 

○ 

● 

● 

● 

● 

●  ●  ●  ● 

●  ●  ●  ● 

● 

○ 

○ 

Key: “●” investments and reforms of the component significantly address the challenge; “○” the 
component partially addresses the challenge 

36 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The  plan  contains important  steps  to  addresses  challenges  related  to  fiscal  governance 
and the fiscal framework (CSR 1 in 2019). Austria has been recommended for several years 
to simplify and rationalise fiscal relations across layers of government and to align financing 
and  spending  responsibilities.  The  plan  includes  a  proposal  for  spending  reviews  related  to 
green  and  digital  transition  (4.D.1)  as  well  as  a  proposal  for  green  budgeting  related  to  the 
reform of climate governance (4.D.4). All these are important elements to address the CSR, 
but do not  yet  constitute a comprehensive reform. This is acknowledged by the plan, which 
explicitly  states  that  a  more  general  reform  of  the  fiscal  framework  is  postponed  due  to 
challenges related to the pandemic.  

The plan is expected to address some of the challenges in the pension system (CSR 1 in 
2019).  The  projected  rise  in  age-related  government  expenditure  poses  a  risk  to  Austria’s 
fiscal  sustainability  in  the  long  term,  which  is  confirmed  by  the  updated  projections  of  the 
forthcoming  2021  Ageing  Report.  The  plan  includes  four  measures  related  to  pensions:  (i) 
Introduction  of  the  early  starter  bonus  (Frühstarterbonus,  4.D.2);  (ii)  Abolishment  of  the 
deduction-free  early  retirement  after  45  contribution  years  (Hacklerregelung,  4.D.2); 
(iii) Postponement  of  first  pension  increase  (Aliquotierung,  4.D.2);  and  (iv)  Pension 
splitting (4.D.3). While the pension splitting is expected to be largely budget neutral, the other 
three measures will result in annual expenditure savings. As such, they contribute to the fiscal 
sustainability  of  the  pension  system,  while  not  entirely  solving  the  problem.  The  pension 
splitting  contributes  to  narrowing  the  gender  pension  gap,  a  long-recognised  challenge  in 
Austria.  

The plan helps with addressing some of the challenges identified in the health and long-
term care system (CSR 1 in 2019 and 2020). Projections of the Austrian public health care 
spending point to a fiscal sustainability risk in the long run. Public expenditure for long-term 
care as a percentage of GDP is projected to increase steadily due to increasing ageing of the 
population.  In  addition,  the  long-term  care  system  faces  staffing  challenges,  which  became 
even  more  perceptible  and  evident  during  the  COVID-19  pandemic.  The  Austrian  health 
system  could  be made  more efficient by shifting  responsibilities to  primary  care centres for 
conditions  which  do  not  necessarily  need  to  be  treated  in  hospitals.  The  need  for  a  more 
comprehensive  use  of  these  centres  was  also  underlined  by  the  current  crisis,  with  an 
additional increase in the demand to provide easily accessible primary care. To address these 
concerns,  the  Austrian  recovery  and  resilience  plan  includes  a  reform  to  promote  primary 
health  care  projects (4.A.1)  and 
the  provision  of  primary  health  care 
centres (4.A.2). To complement these efforts, two further measures focus on the prevention of 
potential  health  care  issues  already  at  an  early  stage  in  life  (‘Development  of  the  electronic 
mother-child  pass  platform  including  the  interfaces  to  the  early  aid  networks’,  4.A.3; 
‘National roll-out of “early aid” for disadvantaged pregnant women, their young children and 
families’,  4.A.4).  The  proposed  reform  of  long-term  care  provision  and  the  investment  in  a 
pilot  project  for  community  nursing  address  structural  challenges  of  the  Austrian  long-term 
care system.  

to  expand 

The  plan  is  expected  to  address  some  of  the  challenges  related  to  making  the  tax  mix 
more efficient and more supportive to inclusive and sustainable growth (CSR 4 in 2020 
and CSR 2 in 2019). Austria has considerable scope for a comprehensive tax reform to foster 
fairness, inclusive growth and environmental sustainability. The proposal for an eco-social tax 
reform  (4.D.5)  included  in  the  Austrian  recovery  and  resilience  plan  has  the  potential  to 

37 

 
 
become a key enabling reform for the green transition and a sustainable economic recovery. 
Additionally,  it  constitutes  an  important  instrument  to  achieve  EU  and  national  climate 
targets, with a specific target for reduction of CO2 emissions. The eco-social tax reform will 
complement  the  already  implemented  retroactive  reduction  of  personal  income  taxation  and 
will  be  accompanied  by  adequate  compensatory  measures  for  private  households  and 
businesses. Additionally, also the green finance agenda (4.D.7) and the Renewable Expansion 
Law (1.D.1) address challenges raised in the context of these CSRs.  

A bundle of targeted measures in the plan aims at enhancing skills of vulnerable groups 
and  improving  labour  market  attainments  of  low-skilled  and  long-term  unemployed 
(CSR 2 in 2019). For the past several  years, Austria has been called upon to step up skills-
enhancing  policies  for  vulnerable  groups,  including  low-skilled  and  people  with  a  migrant 
background. Due to the pandemic, unemployment in Austria has increased significantly and 
the  unemployment  rate  increased  by  0.9pp  to  5.4%  in  2020.  Low-skilled  workers  have 
generally  a  lower  labour  market  attainment  due  to  insufficient  skills,  but  also  exhibit  a  low 
willingness to take part in retraining measures. The planned reform (Education bonus, 3.B.1) 
and the up- and reskilling measures (3.B.2) address the challenges described in the country-
specific  recommendations.  The  planned  one-stop-shop  for  long-term  unemployed  facing 
multiple  barriers  to  placement  and  inclusion  in  the  labour  market  (4.D.10)  is  of  particular 
relevance  for  the  low-skilled  and  cushions  the  adverse  effects  of  the  crisis  on  the  labour 
market. 

The  plan  includes  several  measures  to  improve  the  business  environment  and  address 
regulatory  barriers  (CSR  3  in  2019  and  2020).  The  analysis  in  the  framework  of  the 
European  Semester  showed  that  the  high  administrative  burden  in  Austria  discourages 
investment, in particular among SMEs and in the services sector. Regulatory restrictiveness is 
high for certain professional services, such as accounting, architecture, engineering, real estate 
agents and in retail. It represents an effective entry barrier. Moreover, the small and volatile 
market for equity capital (notably risk capital) is a bottleneck to the scaling-up of innovative, 
growth-oriented  firms.  The  implementation  of  the  once-only  reform  (2.C.1)  is  expected  to 
reduce bureaucracy for businesses and compliance costs caused by incompatible IT systems. 
The plan includes new equity funding options and a reform proposal for strengthening equity 
(4.D.9). Furthermore, the plan includes a reform introducing a new company form (‘Austrian 
Limited’, 4.D.8). This new legal form shall be tailored to the needs of start-ups and innovative 
SMEs  and  the  area  of  social  entrepreneurship.  Additionally,  the  plan  includes  three  reform 
proposals aiming at the liberalisation of business regulations (4.D.11).  

A substantial number of the proposed reforms and investments are targeted towards the 
green  transition  and  the  reduction  of  Greenhouse  gas  emissions  (CSR  3  in  2019  and 
2020).  A  combination  of  reform  and  investment  measures  included  in  the  plan  aims  at 
addressing the challenges related to energy efficiency, renewable energy and the reduction of 
GHG  emissions.  The  proposed  measures  are  aligned  with  the  objectives  of  the  National 
Energy  and Climate Plan (NECP) and support the green transition.  In line with  the relevant 
CSRs and the Sustainable and Smart Mobility Strategy, the focus of the transport component 
of the Austrian recovery and resilience plan is on zero-emission road transport (1.B.3, 1.B.4), 
TEN-T  rail  network  (1.B.5)  and  multimodal  passenger  transport  (1.B.1,  1.B.2).  In  addition, 
the plan includes further measures to strengthen biodiversity (1.C.2), accelerate the transition 
to a circular economy (1.C) and repair activities (1.C.5), as well as the prevention, collection 

38 

 
 
and sorting of waste (1.C.1, 1.C.3, 1.C.4). Furthermore, the plan includes a reform to extend 
Austria’s renewables production capacity (1.D.1) as well as an investment to increase support 
for efficient energy use and generation in industry (1.D.2). 

The  Austrian  recovery  and  resilience  plan  addresses  challenges  related  to  the  digital 
transition in an ambitious manner (CSR 3 in 2019 and 2020). Austria has a low coverage 
with  very  high-capacity  networks,  particularly  in  rural  areas  and  performs  below  the  EU 
average  for  the  integration  of  digital  technology  in  businesses.  Enhancing  digitalisation  can 
create  jobs  in  the  short  run  and,  together  with  digitalisation  of  businesses,  increase 
productivity  and  competitiveness.  The  plan  includes  investment  measures  to  enhance 
broadband coverage and the expansion of the Gigabit network (2.A), particularly also to close 
the rural divide and to  ensure competitiveness across Austria.  In addition,  the plan includes 
investments  in  the  digitalisation  of  companies  (in  particular  SMEs)  (2.D.1,  2.D.2), 
digitalisation  of  cultural  heritage  (4.C.2,  4.C.4),  and  the  provision  of  digital  equipment  for 
pupils (2.B.2), accompanied by several reforms, including the once-only principle (2.C.1) and 
the development of the platform Internetinfrastruktur Austria (2.A.1).  

The  plan  includes  important  reform  and  investment  measures,  related  to  improving 
education outcomes and enhancing early childcare education (CSR 2 in 2019 and 2020). 
The  poor  education  outcomes  of  children  with  disadvantaged  socio-economic  or  migrant 
background  has  been  raised  as  a  challenge  in  the  framework  of  the  European  Semester  for 
several  years.  The  risk  of  falling  behind  in  the  education  system  has  potentially  been 
aggravated  by  the  prolonged  periods  of  distance  learning  during  the  COVID-19  crisis. 
Improving  access  to,  and  quality  of,  early  childhood  education  and  care  is  seen  as  an 
important  building  block  to  improve  educational  attainment  of  children  with  disadvantaged 
socio-economic  background.  The  measures  included  in  the  Austrian  plan  seek  to  improve 
equal access to education by strengthening early childhood education, especially for children 
under three-year old (3.C.3). Extra support for pupils should compensate for learning losses 
during the pandemic (3.C.2). The two investments are linked to a reform that broadens access 
to  education  (3.C.1).  All  these  measures  aim  at  improving  access  to  education  and  the 
attainment  of  disadvantaged  groups,  identified  as  challenges  in  2019  and  2020.  The 
COVID-19 crisis has reconfirmed the need to equip teachers with digital skills and to develop 
blended learning at system, school and class level, and digitalisation plans at school level. The 
plan includes an investment programme for digital end devices for pupils (2.B.2) and a reform 
to ensure fair and equal access for pupils to basic digital competences, among others via the 
facilitate  administration,  communication,  and 
introduction  of 
learning (2.B.1).  These  measures  address  the  challenges  raised  in  the  CSR,  support  the 
Austrian priorities regarding digital education and competences, and can help equalise access 
to digital education.  

two  platforms 

to 

The  plan  includes  ambitious  efforts  to  enhance  research  and  innovation  to  strengthen 
Austria’s competitiveness (CSR 3 in 2019 and 2020). Austria’s R&D intensity has been one 
of  the  highest  in  the  EU,  but  the  country  has  lagged  behind  innovation  leaders  in  terms  of 
innovation outcomes, i.e. translating Austria’s R&D efforts into cutting-edge innovation. The 
plan  includes  a  research,  technology  and  innovation  strategy  that  addresses  the  key  points 
from  the  European  Semester  2020  analysis.  In  line  with  this  strategy,  major  research 
investments  are  related  to  quantum  science  (3.A.2),  high-tech  medicine  (3.A.3),  and  digital 
research  infrastructure  (3.A.4).  Furthermore,  the  plan  includes  two  planned  IPCEIs 

39 

 
 
(microelectronics, 3.D.1; hydrogen, 3.D.2). The proposed measures address the weakness of 
the Austrian R&D system and help translate its R&D efforts into innovation outcomes, e.g. by 
promoting competitive basic research through an Excellence Initiative.  

The  Austrian  plan  is  ambitious  in  contributing  to  address  a  significant  subset  of  the 
challenges identified in the European Semester.  The reforms and investments included in 
the  Austrian  plan  are  in  line  with  the  challenges  identified  for  Austria  in  the  context  of  the 
European Semester over the last years. The Austrian plan addresses all challenges set out in 
the country specific recommendations issued to Austria in the years 2019 and 2020, but not 
all  challenges  are  addressed  to  the  same  extent.  Additional  reforms  may  be  needed  in  the 
coming  years  to  eliminate  the  longstanding  issue  related  to  the  fiscal  sustainability  of  the 
health,  long-term  care  and  pension  systems  that  were  not  addressed.  A  reform  of  the  fiscal 
framework  has  also  been  postponed.  Further  measures  to  support  and  improve  the  learning 
outcomes  of  students  from  disadvantaged  backgrounds  as  well  as  additional  labour  market 
measures  to  ensure  their  participation  may  be  needed  in  the  medium  term  when  the 
consequences  of  the  crisis  become  clear.  Additional  reductions  of  the  administrative  and 
regulatory burden on businesses and measures expanding the business opportunities would be 
necessary,  in  particular  of  the  retail  sector  and  on  the  restriction  on  exercising  certain 
professional services, allowing them to contribute with their full potential to the growth of the 
Austrian economy. In line with the overall prioritises of the RRF, the plan focuses on reforms 
and investments related to the green and digital transition, where Austria also faces particular 
challenges,  notably  to  reach  the  climate  targets  and  to  improve  the  competitiveness  of  the 
economy  through  digitalisation.  Furthermore,  the  reforms  and  investments  included  in  the 
recovery  and  resilience  plan  complement  government  priorities  included  in  the  National 
Reform Programme in a meaningful way. 

Overall, the components of the plan are a comprehensive attempt to  address  Austria’s 
economic and social challenges. The measures included in the plan contribute to the up- and 
reskilling  of  the  labour  force,  and  to  strengthening  competitiveness  and  productivity.  The 
reform and investment measures are likely to facilitate long-term structural changes in certain 
areas and prepare the economy for future challenges. The strong focus on the green transition, 
including  measures  such  as  increasing  the  energy  efficiency  in  buildings  and  enhancing  the 
use  of  renewable  energies,  and  the  boost  to  sustainable  mobility  and  circular  economy  can 
help  make  growth  more  sustainable  in  the  long  run  and  reach  the  climate  target,  while 
maintaining  competitiveness.  The  strong  focus  on  digitalisation  and  on  innovation  and 
research  is  likely  to  increase  Austria’s  competitiveness.  The  comprehensive  proposal  for  an 
eco-social  tax  reform  is  a  significant  contribution  to  make  the  tax  mix  more  supportive  for 
inclusive  and  sustainable  growth.  Enhancing  the  skills,  particular  of  the  low-skilled  and 
focusing on the labour market integration of the long-term unemployed, helps address social 
challenges. The measures in the education sectors will support better education outcomes of 
the  pupils  with  disadvantaged  socio-economic  background.  The  measures  in  the  pension 
system are a first step to address structural challenges. The measures in the health and long-
term  care  sector  address  particularly  challenges  related  to  the  organisation  and  provision  of 
services  in  this  sector.  The  spending  reviews  and  the  green  budgeting  address  some  of  the 
challenges related to the fiscal governance, while the overall reform of the fiscal framework is 
postponed due to the COVID-19 crisis.  

40 

 
 
Taking  into  consideration  the  reforms  and  investments  envisaged  by  Austria,  its 
recovery  and  resilience  plan  is  expected  to  contribute  to  effectively  addressing  all  or  a 
significant  subset  of  challenges  identified  in  the  country-specific  recommendations,  or 
challenges in other relevant documents officially adopted by the Commission under the 
European  Semester,  and  the  recovery  and  resilience  plan  represents  an  adequate 
response to the economic and social situation of Austria. This would warrant a rating of A 
under the assessment criterion 2.2 in Annex V to the RRF Regulation. 

4.3  Growth  potential,  job  creation,  economic,  institutional  and  social  resilience, 
European  Pillar  of  Social  Rights,  mitigating  the  impact  of  the  crisis,  and 
social territorial cohesion and convergence  

Fostering economic growth and jobs 

The  reform  and  investment  measures  included  in  the  Austrian  recovery  and  resilience 
plan help enhance economic growth, contribute to job growth, and mitigate effects of the 
COVID-19 crisis. The reform and investment measures included in the plan foster economic 
growth  and  economic  cohesion  in  an  inclusive  manner,  especially  since  the  plan  addresses 
previously  identified  challenges  and  impediments  to  Austria’s  growth  potential  (c.f.  section 
4.2). Notably, the plan includes a comprehensive reform and investment package for the green 
and  digital  transition  and  sizable  measures  to  improve  Austria’s  performance  in  innovation, 
research, and technology. With this clear focus on Austria’s twin transition and productivity, 
the  plan  will  contribute  positively  to  the  future  growth  potential  and  job  growth.  The  plan 
focuses  also  on  enhancing  human  capital  with  targeted  active  labour  market  and  education 
measures,  which  is  particularly  relevant  to  mitigate  the  effects  of  the  COVID-  19  crisis. 
Further  measures  included  in  the  plan  address  weaknesses  of  the  Austrian  business 
environment and improve the framework conditions for start-ups.  

Reform  and  investment  measures  related  to  the  green  and  digital  transition  and  to 
research and innovation will contribute to Austria’s growth potential. Measures related to 
the  green  transition,  such  as  supporting  the  use  of  renewable  energies  (1.A,  4.B.3)  and 
boosting  the  circular  economy  (2.C)  and  the  sizable  investment  in  green  mobility  (1.B)  are 
expected to positively contribute to sustainable and inclusive growth. Additionally, they help 
reach  the  climate  targets  in  2030  and  achieve  carbon  neutrality  in  the  European  Union  by 
2050.  This  will  also  help  reduce  the  economic  costs  of  climate  change  and  particularly  the 
green  investments  will  contribute  positively  to  the  growth  perspective  of  the  Austrian 
economy and secure jobs. Investments and reforms targeted to enhancing the digitalisation of 
the  Austrian  economy  represent  a  sizable  share  of  the  Austrian  plan.  The  COVID-19  crisis 
and the ensuing containment measures underlined the need for enhanced digitalisation to keep 
close  relationships  with  customers  and  to  stay  in  the  market.  Thus,  particularly  the 
investments  in  broadband  expansion  (2.A)  and  the  targeted  support  for  the  digitalisation  of 
SMEs  (2.D.1,  2.D.3)  will  positively  contribute  to  the  growth  potential  and  enhance  the 
competitiveness  of  the  Austrian  economy.  The  plan  stimulates  private  investments  through 
the  measures  related  to  the  green  and  digital  transition  and  through  the  investment  bonus 
(2.D.2,  2.D.3),  which  is  intended  to  support  private  investments  in  periods  of  uncertainty. 
Thus, the plan will likely have a persistent effect on potential output and labour productivity 
through  an  increase  and  modernisation  of  the  capital  stock.  The  plan  also  includes  targeted 
measures  to  better  translate  investments  in  research  into  innovative  outcomes  (3.A),  which 

41 

 
 
has been identified as one of the challenges for the Austrian economy. In addition, investment 
in the digitalisation of schools (2.B) and of the public administration (2.C) are also expected 
to positively contribute to Austria’s growth potential.  

A substantial share of the measures in the plan seek to enhance the skills of the labour 
force,  improve  education  outcomes  and  mitigate  adverse  effects  of  the  crisis.  The 
comprehensive package of up- and reskilling measures targets low-skilled persons and those 
distant  from  the  labour  market.  This  crucial  element  of  active  labour  market  policy  helps 
increase  the  probability  of  re-employment  and  the  future  wage  income  of  participants.  The 
planned establishment of a one-stop shop service for long-term unemployed (4.D.10), facing 
multiple barriers to placement and inclusion in the labour market, will support reintegration of 
those people in the labour market, by effectively tackling their specific needs. The education 
package,  notably  the  remedial  education  (3.C.2),  helps  close  learning  gaps  accumulated 
during  the  prolonged  periods  of  distance  learning  during  the  pandemic  and  supports  in 
particular  pupils  with  disadvantaged  socio-economic  background.  In  addition,  the  enhanced 
investment  in  elementary  education  (3.C.3)  seeks  to  mitigate  potential  inequalities  in  the 
education system early on. Overall, these measures aim to increase the human capital and to 
provide the right skills for the labour market, improving the growth potential and contributing 
to job growth. Furthermore, these measures mitigate potential adverse effects of the crisis. 

Improving  the  business  environment  and  the  condition  for  start-ups  contributes  to 
better  framework  conditions  for  potential  growth.  The  Austrian  plan  includes  several 
reform proposals, which address weaknesses of the business environment (4.D.11) and in the 
framework conditions for start-ups (4.D.8). The legal proposal for the ‘Once-only principle’ 
(2.C.1) seeks to reduce the administrative burden and decrease the compliance costs, caused 
by incompatible IT systems, and to encourage investment, particularly among SMEs, notably 
also in the services sectors. The start-up package (4.D.8) will further encourage and facilitate 
setting  up  companies  in  Austria.  The  liberalisation  of  the  commercial  framework  law  will 
eliminate some aspects, which hamper the smooth functioning of certain businesses.  

The overall impact on economic growth is expected to be positive, and public investment 
will  exceed  the  levels  reached  before  the  COVID-19  pandemic.  The  economic  impact 
assessment  of  the  recovery  and  resilience  plan  assumes  that  investments  financed  by  the 
recovery and resilience plan amount to EUR 4.5 billion between 2020-2026, which translates 
to 0.17% of GDP per year (based on the 2020 GDP levels). The Austrian authorities estimate 
that  GDP  will  be  boosted  by  0.91%  in  2025,  when  compared  to  a  policy  neutral  baseline. 
Labour market conditions are also set to benefit, and the budget balance is set to improve by 
0.34 percentage points by 2025 as opposed to the policy neutral baseline. Overall, economic 
growth  will  be  greener,  more  digital,  and  more  resilient.  The  estimated  economic  impact 
seems  to  be  plausible  given  the  size  of  the  recovery  and  resilience  plan  support.  The 
information  provided  in  the  plan  show  that  only  part  of  the  investment  included  in  the 
recovery  and  resilience  plan  is  gross  fixed  capital  formation,  while  the  rest  is  composed  of 
capital  transfers  (investment  support),  public  consumption,  and  subsidies.  According  to  the 
data presented in the plan (Table 9) gross fixed capital formation in the period of 2020-2026 
is expected to exceed the average level in the three-year period before the pandemic (2017-
2019),  even  when  not  taking  into  account  the  part  that  is  not  financed  by  the  RRF. 
Considering  also  spill-over  effects  from  other  countries,  the  Commission’s  QUEST  model 

42 

 
 
finds that Austria’s GDP can increase by between 0.4% and 0.7% by 2026, and effects could 
be stronger considering the impact of structural reforms (see Box 4.3a). 

Box 4.3a: Stylised NGEU impact simulations with QUEST – Austria 

Model simulations conducted by the Commission using the QUEST model show that the 
economic impact of the NGEU in Austria  could lead  to an increase of GDP of between 
0.4% and 0.7% by 202622. After 20 years, GDP could be 0.2% higher. Spillovers account 
for a large part of such impact.  

According to  these simulations, this  would translate into up to  14,000 additional jobs.  Cross 
border (GDP) spillovers account for 0.5 pps in 2026, showing the value added of synchronised 
expenditure  across  Member  States  (line  2).  Even  in  a  scenario  with  a  lower  productivity  of 
NGEU funds, it would still lead to a significant impact (line 3)23. 

Table 4.3: QUEST simulation results (%-deviation of real GDP level from non-NGEU case, 
linear disbursement assumption over 6 years) 
2023  2024 
Scenario 

2025  2026  2027  2028  2029 

2021  2022 

2030  2040 

Baseline 

   of which spillover 

Low productivity 

0.5 

0.4 

0.2 

0.6 

0.5 

0.3 

0.7 

0.5 

0.3 

0.7 

0.5 

0.3 

0.7 

0.5 

0.4 

0.7 

0.5 

0.4 

0.6 

0.4 

0.4 

0.5 

0.3 

0.2 

0.4 

0.3 

0.2 

0.4 

0.2 

0.2 

0.2 

0.1 

0.1 

This stylised scenario does not include the possible positive impact of structural reforms, 
which  can  be  substantial.  A  model-based  benchmarking  exercise  shows  that  undertaking 
structural  reforms  that  would  result  in  halving  the  gap  vis-à-vis  best  performers  in  terms  of 
indicators  of  structural  reforms  could  raise  Austrian  GDP  by  12%  in  20  years,  in  line  with 
findings for the EU average24. 

Due  to  the  differences  in  the  assumptions  and  methodology  the  results  of  this  stylised 
assessment  cannot  be  directly  compared  to  the  numbers  reported  in  chapter  4  of 
Austria’s RRP.  

Strengthening social cohesion 

Several measures in the plan aim at strengthening social cohesion, even though Austria 
has  overall  a  particularly  good  performance  regarding  the  principles  of  the  European 
Pillar of Social Rights and the indicators included in the Social Scoreboard. Nevertheless, 
there  are  certain  areas,  where  social  cohesion  could  still  be  strengthened,  notably  persistent 
structural  challenges  that  have  aggravated  during  the  COVID-19  crisis.  To  this  end,  the 
Austrian plan includes targeted policies for children and the youth and certain measures focus 

22  RRF  amounts  to  roughly  90%  of  NGEU,  which  also  includes  ReactEU,  Horizon,  InvestEU,  JTF,  Rural 
Development and RescEU. 
23 Technically, the low productivity scenario considers a significantly reduced output elasticity of public capital. 
24 Varga, J, in 't Veld J. (2014), “The potential growth impact of structural reforms in the EU: a benchmarking 
exercise ", European Economy Economic Papers no. 541.  
http://ec.europa.eu/economy_finance/publications/economic_paper/2014/pdf/ecp541_en.pdf.  

43 

 
 
 
 
 
 
                                                           
on  reducing  social  vulnerabilities.  Measures  included  in  the  education  system  (elementary 
education  package,  3.C.3;  remedial  education  package,  3.C.2;  provision  of  digital  end-user 
devices  to  pupils,  2.B.2)  aim  at  reducing  social  vulnerabilities,  particularly  for  children  and 
the youth with a disadvantaged socio-economic background. The education bonus (3.B.1), the 
up-  and  reskilling  measures  (3.B.2),  and  the  one  stop  shop  service  for  long-term 
unemployed (4.D.10)  foster  the  inclusion  of  the  low-skilled  and  long-term  unemployed.  In 
addition,  the  measure  on  fighting  energy  poverty  (1.A.3)  helps  reduce  social  vulnerabilities 
related to the sometimes-costly investment in the transition to renewable energies and make 
the green transition more inclusive. The reform of the primary health care provision (4.A.2), 
the  long-term  care  reform  (4.B.2),  and  the  provision  of  community  nurses  (4.B.4)  have 
positive  effects  on  strengthening  social  cohesion,  as  their  services  seek  to  reach  individuals 
who  had  until  now  limited  access  to  these  services.  The  measure,  ‘early  aid’  (4.A.4)  for 
disadvantaged  pregnant  women,  their  young  children  and  families  aims  to  offer  a  range  of 
targeted  services,  with  the  aim  to  reduce  the  social  vulnerabilities  for  pregnant  women  and 
their  children.  Likewise,  the  electronic  mother-child  pass  (4.A.3)  targets  those  women  and 
children,  who  do  not  necessarily  take  up  these  services.  The  reforms  in  the  pension  system 
will make the entire system fairer (4.D.2, 4.D.3) and some of them are expected to reduce the 
gender pension gap (4.D.3). All these elements help reduce social vulnerabilities, contribute 
to the implementation of the European Pillar of Social Rights and improve the indicators of 
the Social Scoreboard.  

Reducing vulnerability and increasing resilience 

Green reforms and investments will strengthen economic and environmental resilience. 
Investments  related to  the  green transition  support  the economic transformation and climate 
adaption through decarbonisation of the industry, stronger reliance on renewable energy, and 
enhancing  energy  efficiency,  and  promote  the  circular  economy  (1.A,  1.B.  1.C,  1.D,  2.D.3, 
3.D.1).  The  plan  supports  the  shift  to  domestic,  zero-emission  energy  resources,  which  is 
likely to increase Austria’s resilience towards price fluctuations on the world energy market, 
together with  the beneficial environmental and climate effects.  Overall, this enhanced  green 
transition  is  also  likely  to  strengthen  the  resilience  of  the  economy,  in  light  of  accelerating 
climate and environmental challenges and the needed economic recovery. 

Reforms  and  investments  related  to  the  digitalisation  and  an  enhanced  focus  on 
innovation  and  research  will  support  the  change  towards  a  more  digital  and  resilient 
economy. The measures in the plan foster the expansion of Gigabit-enabled access networks 
(broadband networks with very high capacity, 2.A) and support the digitalisation of the public 
administration  (3.C.2)  and  SMEs  (3.D.1,  3.D.2).  This  will  facilitate  business  activities, 
support competitiveness and strengthen the resilience towards future crisis. Measures, like the 
planned  IPCEI  on  microelectronics  (3.D.1)  are  expected  to  contribute  to  strengthening  the 
digital  autonomy  and  securing  future-oriented  jobs  in  Austria.  The  measures  in  research, 
innovation,  and  technology,  notably  the  investments  in  quantum  science  (3.A.2),  the  centre 
for biomedicine (3.A.3), and in digital research infrastructure (3.A.4) are expected to reinforce 
Austria’s position as a key player for research, innovation, and technological development. 

The  Austrian  recovery  and  resilience  plan  includes  targeted  measures  in  the  labour 
market, education, health, and pension system to enhance social resilience. The education 

44 

 
 
bonus, the package of retraining and upskilling measures and the one-stop shop services for 
long-term unemployed are supporting the low skilled, long-term unemployed and all people 
distant from the labour market. The measures include the appropriate services and a targeted 
institutional  set-up  to  enable  their  permanent  labour  market  integration.  The  education 
measures  aim  at  reducing  the  risk  of  low  education  outcomes  and  the  related  long-term 
negative  effects  for  social  integration,  notably  by  providing  support  to  catching  up  with  the 
education content lost during the prolonged period of distance learning during the COVID-19 
pandemic. Additionally, they aim to tackle potential difficulties early on, with the appropriate 
provision of high-quality early childhood and care services. The measures in the health care 
sector, aim at changing the system of provision of primary care towards a system that is easily 
accessible for all. Overall, these targeted measures are expected to enhance social resilience.  

Cohesion and convergence 

Overall,  Austria  has  a  favourable  development  of  territorial  cohesion  and  regional 
disparities are low. The cohesion between the Austrian regions is visible in a low difference 
in  GDP  per  capita  between  the  regions,  and  an  even  lower  difference  of  income  per  capita 
between  the  regions,  due  to  a  sizable  share  of  commuters.  This  favourable  situation  is 
supported by the Intergovernmental Fiscal Relations Act, which explicitly supports financially 
weak communities and a regional policy that focuses on equal chances in life. However, there 
is a significant urban-rural gap in the provision of certain services.  

Several  measures  included  in  Austrian  plan  aim  at  closing  the  urban-rural  gap  in  the 
provision of certain services. The recovery and resilience plan provides for the expansion of 
Gigabit-enabled  access  networks  (broadband  networks  with  very  high  capacity)  and  the 
establishment of new symmetrical Gigabit connections in areas with specific socio-economic 
priorities (2.A.2). Thereby, the measure seeks to provide equal opportunities for people living 
in urban regions and rural areas, to enhance future territorial development and to strengthen 
Austria as a business location. Strengthening the cohesion through improving the connectivity 
will  also  positively  contribute  to  the  green  transition  as  it  will  promote  online  services  and 
teleworking  and  reduce  the  need  to  commute.  The  expansion  of  early  childhood  and  care 
facilities  targets  weak  regions,  which  so  far  provide  only  limited  services.  The  pilot  project 
community nurses is aiming at providing appropriate long-time care offers in regions, which 
have  difficulties  in  accessibility  to  such  services.  Also,  the  ‘early  aid’  for  disadvantaged 
pregnant  women,  their  young  children  and  families  (4.A.4),  aims  to  be  rolled  out  in  all 
Austrian  regions.  In  addition,  the  expansion  of  the  availability  of  primary  health  care 
centres (4.A.2) intends to make primary care services easily accessible. The measures in the 
education system, notably the provision of digital end-user devices to pupils (2.B.2) and the 
offer  of  a  remedial  education  package  (3.C.2)  are  also  intended  to  improve  availability  of 
targeted  offers 
the  component 
the  regions.  The  measures 
‘environmental  mobility,’  notably  the  1-2-3  ticket  (1.B.2)  and  the  expansion  of  regional 
railways (1.B.5) focus on enhancing accessibility of public transport for people living in less 
well-connected  areas.  Measures  targeted  at  supporting  the  exchange  of  oil  and  gas  heating 
systems with renewable technology such as biomass, heat pumps and efficient district heating 
are especially relevant  to  poorer regions,  due to the prevalence of oil heating in  those areas 
(1.A, 4.B.3).  

throughout 

included 

in 

45 

 
 
Box 4.3b: Employment and social challenges in light of the Social Scoreboard 

accompanying the European Pillar of 
Social Rights 

in 

the 

Austria  performs  relatively  well  on  the  Social 
Scoreboard  supporting  the  European  Pillar  of 
Social  Rights,  but  some  employment  and  social 
challenges  remain.  Austria’s  economy  has  been 
strongly  affected  by  the  COVID-19  pandemic  and 
related containment measures with a 4.3% decline in 
GDP 
fourth  quarter  of  2020.  The 
unemployment  rate  increased  by  0.9%  to  5.4%  in 
2020. Short-time  work schemes helped  mitigate  the 
effects of the crisis on the labour market, despite the 
strong 
hours  worked.  Overall, 
unemployment increased from 4.5% in 2019 to 5.4% 
in  2020  and  is  projected  to  fall  just  below  5%  in 
2022.  The  net  earnings  of  a  single  worker  earning 
the  average  wage  remain  among  the  highest  in  the 
EU.  Net  earnings  also  grew 
in 
comparable  countries  with  high  productivity  levels. 
The  share  of  people  at  risk  of  poverty  or  social 
exclusion fell to 16.9% in 2019. 

faster 

drop 

than 

in 

The  female 
labour  market  potential  remains 
underutilised, mainly due to insufficient provision 
of quality childcare. In 2020 Austria had one of the 
highest  rates  of  employed  women  working  part-time 
in the EU, at 47.5% (EU average 27.6%). The gender 
pay gap remained above the average in 2019 (19.9% 
vs  14.1%  in  the  EU).  The  insufficient  provision  of 
quality  childcare  and  all  day  schools  is  one  of  the 
underlying factors, with 22.7% of children below the 
age  of  3  participating  in  formal  childcare  in  2019, 
below  the  EU  average  of  35.3%  and  the  Barcelona 
target  of  33%.  Considerable  regional  differences  are 
also observed.  

The  recovery  and  resilience  plan  submitted  by 
Austria  addresses  a  number  of  employment  and 
social challenges relevant for the implementation 
of  the  Pillar.  To  improve  labour  market  dynamics 
and  working  conditions,  the  plan  provides  a  strong 
investment in reskilling and upskilling, accompanied 
by  a  reform  called  Education  bonus.  To  foster  equal  opportunities  and  access  to  the  labour  market,  Austria 
focusses  on  the  improvement  of  skills  and  competences  and  on  increasing  labour  market  opportunities  for  the 
unemployed. The envisaged investment and reform measures focusing on upskilling and reskilling are expected 
to  have  a  positive  impact  on  employment  and  wages,  notably  of  the  low-skilled.  The  planned  investment  also 
addresses  indirectly  the  digital  transformation  and  provides  a  response  to  demographic  change  requiring  the 
development  of  new  skills.  Reforms  and  tailored  measures  increasing  skills  and  qualifications  are  important  in 
order to provide much needed support, in synergy with ESF funding. 

As more people likely to fall back on the basic safety nets due to the COVID-19 crisis, also reforms on social 
protection  and  inclusion  gain  in  importance,  in  synergy  with  ESF  funding.  A  preventive  approach  to  long-
term care is envisaged by a measure establishing community nurses. Advice and support by the latter would enable 
older  people  and  persons  with  disabilities  to  have  access  to  care,  while  enabling  them  to  live  in  their  home 
environment. The measure aims to ensure the sustainability of the health and long-term care systems.  

46 

Critical situationTo watchWeak but improvingGood but to monitorOn averageBest performersDynamic labour markets and fair working conditionsSocial protection and inclusionBetter than averageUpdate of 29 April 2021. Members States are classified on the Social Scoreboard according to a statistical methodology agreed with the EMCO and SPC Committees. It looks jointly at levels and changes of the indicators in comparison with the respective EU averages and classifies Member States in seven categories. For methodological details, please consult the Joint Employment Report 2021; NEET: neither in employment nor in education and training; GDHI: gross disposable household income.At risk of poverty or social exclusion (in %) (2019)Employment rate (% population aged 20-64) (2020)Unemployment rate (% population aged 15-74) (2020)Long term unemployment (% population aged 15-74) (2020)GDHI per capita growth (2019)Net earnings of a full-time single worker earning AW (2019)Impact of social transfers (other than pensions) on poverty reduction (2019)Children aged less than 3 years in formal childcare (2019)Self-reported unmet need for medical care (2019)Individuals' level of digital skills (2019)Social Scoreboard for AUSTRIAEarly leavers from education and training (% of population aged 18-24) (2020)Youth NEET (% of total population aged 15-24) (2020)Gender employment gap (2020)Income quintile ratio (S80/S20) (2019)Equal opportunities and access to the labour market 
 
 
 
Taking into consideration all reforms and investments envisaged by Austria, its recovery 
and resilience plan is  expected to effectively  contribute to strengthen growth potential, 
job creation, and economic, social and institutional resilience of the Member State, and 
to  the  implementation  of  the  European  Pillar  of  Social  Rights,  including  through  the 
promotion  of  policies  for  children  and  the  youth,  and  on  mitigating  the  economic  and 
social  impact  of  the  COVID-19  crisis,  thereby  enhancing  the  economic,  social  and 
territorial cohesion and convergence within the Union. This would warrant a rating of A 
under the assessment criterion 2.3 of Annex V to the RRF Regulation. 

4.4 The principle of ‘do no significant harm’ 

Austria’s  recovery  and  resilience  plan  assesses  compliance  with  the  ‘do  no  significant 
harm’  (DNSH)  principle.  The  assessment  follows  the  methodology  set  out  in  the 
Commission’s  Technical  guidance  on  the  application  of  ‘do  no  significant  harm’  under  the 
Recovery and Resilience Facility Regulation (2021/C 58/01). It covers the six environmental 
objectives within the meaning of Article 17 of Regulation (EU) No 2020/852, namely climate 
change  mitigation,  climate  change  adaptation,  sustainable  use  and  protection  of  water  and 
marine  resources,  circular  economy,  pollution  prevention  and  control,  and  protection  and 
restoration of biodiversity and ecosystems. The assessment of environmental impact has been 
carried out for all 27 reforms and 32 investments, resulting in the conclusion that all measures 
in the recovery and resilience plan comply with the DNSH principle.  

The ‘do no significant harm’ assessment follows a two-step approach. In a first step, it is 
assessed if there is a risk that a measure could do significant harm to any of the environmental 
objectives. In most cases the assessment concludes that there is no risk of significant harm, in 
which  case  the  measure  is  assessed  as  compliant  with  that  principle.  In  cases  where  the 
analysis identifies a risk, a more detailed assessment follows. For some measures25, which are 
similar or intertwined in terms of content, the DNSH assessment has been summarised in one 
single table for presentational purposes. In some other cases, the assessment has been carried 
out at sub-measure level in more detail26. 

The  requirements of the DNSH  principle have been integrated in the design of several 
measures  (1.B.3,  1.B.4,  4.C.3).  Where  appropriate,  a  dedicated  specific  milestone  specifies 
concrete steps in the implementation of a measure, such as adoption of funding guidelines, to 
ensure compliance with the DNSH principle (1.D.2). In the case of the investment measures 
2.D.2  and  2.D.3,  the  relevant  Austrian  law  regulating  an  investment  premium  scheme 
supporting  green  and  digital  investments  by  enterprises  explicitly  excludes  investment  in 
climate-damaging  installations  and  equipment,  while  prioritising  best  available  technologies 
and technical standards. Moreover, payments by Austrian authorities to the beneficiaries are 
conditional  on  submitting  evidence  that  excludes  a  negative  impact  on  environmental  and 
climate objectives.  

Thermal  renovations  of  both  public  and  private  buildings,  renewable  heating  and 
energy efficiency measures are covered by several components of Austria’s recovery and 
resilience plan (1.A.2, 1.A.3, 2.D.3, 4.B.3, 4.C.3, 4.C.5). While such thermal renovations are 

25 E.g. 1.A.2 and 1.A3, 3.B.1 and 3.B.2 
26 4.B.3  

47 

 
 
                                                           
expected to reduce energy consumption and emissions of fossil origin, they may also generate 
construction waste. Moreover, extensive use of heating systems based on biomass may raise 
questions  of  their  impact  on  air  quality,  biodiversity  and  ecosystems.  To  avoid  significant 
harm  to  pollution  prevention  and  to  the  protection  of  biodiversity  and  ecosystems,  the 
recovery and resilience plan states that low emission technologies are used in biomass heating 
systems, compliant with the newest emission limit values and efficiency requirements of the 
national Ecolabel standards. Additionally, the expected rise in the production of solid biomass 
for heat in Austria is based on timber and forestry residues extracted in a sustainable manner, 
in  line  with  the  national  Bioeconomy  Strategy.  The  relevant  measures  also  indicate  that  the 
national emission limits for district heating systems are, to a large extent, stricter than the EU 
minimum eco-design standards.  

Austria’s recovery and resilience plan allocates significant resources to environmentally 
friendly  mobility,  including  rail  infrastructure  (1.B.5),  zero-emission  buses  (1.B.3),  and 
utility  vehicles  (1.B.4)  with  charging  stations.  The  plan  confirms  that  the  design  of  the 
investment in zero-emissions busses and vehicles will draw on the EU Taxonomy Regulation 
by  following  the  draft  technical  screening  criteria  on  urban  and  suburban  transport,  road 
passenger transport (as set out in section 6.3 of the Technical annex to the Final report of the 
Technical  Expert  Group  on  Sustainable  Finance,  published  in  March  202027),  and 
infrastructure  enabling  low-carbon  road  transport  and  public  transport  (as  set  out  in  section 
6.15  of  the  above  mentioned  Technical  annex).  In  respect  to  the  circular  economy,  waste 
prevention and recycling objectives, the DNSH assessment indicates that these measures will 
comply  with  the  waste  hierarchy  and  the  EU  Construction  and  Demolition  Waste 
Management  Protocol,  ensuring  that  at  least  70%  of  the  non-hazardous  construction  and 
demolition waste generated on the construction site is prepared for re-use, recycling and other 
material recovery. Where relevant, measures will be taken to reduce noise, dust and pollutant 
emissions,  whereas  noise  and  vibrations  from  use  of  infrastructure  will  be  mitigated  by 
introducing  open  trenches,  wall  barriers  or  other  measures  and  comply  with  Directive 
2002/49/EC.  Based  on  comprehensive  environmental  impact  assessments  (EIA),  including 
additional environmental measures (on air, water, soil and human health protection), Austria 
ensures  that  no  significant  harm  to  the  environment  is  done  by  the  proposed  investment  in 
railway infrastructure.  

Expansion  of  renewable  energy,  decarbonisation  of  industry,  including  through 
hydrogen, also feature among the priorities of the recovery and resilience plan. With the aim 
to  reduce  GHG  emissions,  measure  1.D.2  Decarbonisation  of  industry  will  fund  large-scale 
transformative projects in energy-intensive sectors covered by the EU ETS. Compliance with 
the DNSH principle will be ensured by an amendment of the relevant funding guidelines and 
eligibility  criteria  specifying  that  beneficiaries  must  achieve  GHG  reductions  that  are 
substantially below the relevant ETS benchmarks. To this end, the measure includes a specific 
milestone. Moreover, each project supported under this measure will have to quantify ex ante 
the impact of the investment on its raw material intensity and GHG emissions.  

27 https://ec.europa.eu/info/sites/default/files/business_economy_euro/banking_and_finance/documents/200309-
sustainable-finance-teg-final-report-taxonomy-annexes_en.pdf. 

48 

 
 
                                                           
Promoting  integrated  projects  along  the  hydrogen  value  chain  is  the  objective  of  the 
planned IPCEI Hydrogen (3.D.2). As recalled by the Technical guidance on the application of 
the DNSH principle under the RRF Regulation, measures promoting greater electrification of 
carbon intensive sectors, including through hydrogen, are required for the transition towards a 
climate-neutral economy and thus are deemed as complying with the DNSH principle in the 
area  of  climate  change  mitigation,  provided  that  Member  States  justify  that  greater 
electrification  is  accompanied  by  increased  renewables  generation.  Austria  satisfies  this 
requirement  by  the  proposed  reform  of  the  national  support  scheme  for  renewable  energy 
(Renewable  Expansion  Law,  1.D.1)  that  aims,  through  market  premiums  and  investment 
grants,  to  expand  renewable  electricity  capacity  by  27TWh  by  2030.  Moreover,  the  DNSH 
assessment  of  the  reform  stresses  its  strong  environmental  considerations.  For  instance,  it 
favours  PV  solar  energy  in  built-up  areas  such  as  rooftops  (rather  than  in  open  spaces).  As 
regards  hydropower  projects,  in  addition  to  the  required  nature  conservation  (Habitats  and 
Birds Directive) and water (Water Framework Directive) permits, the Renewable Expansion 
Law provides for a number of ecological criteria with which support to hydropower projects 
must comply.  

The  plan  also  includes  a  number  of  further  reform  measures  under  subcomponent  4.D 
Resilience through reforms related to spending reviews, sustainability of the pension system, 
eco-social tax reform, climate action governance, green finance, start-up and equity finance, 
labour  market  and  skills  and  simplification  of  business  regulations.  The  DNSH  assessment 
has confirmed that they do no significant harm to any of the six environmental objectives. 

Taking into consideration the assessment of all the measures envisaged, no measure for 
the implementation of reforms and investments projects included in Austria’s recovery 
and resilience plan is expected to do significant harm to environmental objectives within 
the  meaning  of  Article  17  of  Regulation  (EU)  No  2020/852  (the  principle  of  ‘do  no 
significant  harm’).  This  would  warrant  a  rating  of  A  under  the  assessment  criterion  2.4  of 
Annex V to the RRF Regulation.  

4.5 Green transition 

The methodology for climate tracking has been applied across all components of Austria’s 
recovery  and  resilience  plan  as  set  out  in  Annex  VI  to  the  RRF  Regulation.  The  estimated 
costs of the proposed measures are assigned to the appropriate intervention fields for climate 
change and corresponding coefficients to calculate their contribution to the climate target. The 
choice of intervention fields reflects the nature, focus, objective or expected outcome of the 
investments. It should be noted that: 

  The proposed reform measures do not have any associated cost within the recovery and 
resilience  plan.  In  this  context,  the  recovery  and  resilience  plan  does  not  identify 
intervention fields for them, and they do not contribute to reaching the climate target. 
  Some measures in the recovery and resilience plan consist of several sub-measures – for 
measures where that is the case, the recovery and resilience plan indicates an intervention 
field for each sub-measure and provides a weighted average of contribution to the climate 
target for the whole measure.  

  The recovery and resilience plan does not propose any increased climate coefficients for 

any investment measure to take account of accompanying reforms. 

49 

 
 
  Where  relevant,  specific  safeguards  were  introduced  through  selection  criteria  for  the 
investments or provisions in the milestones and targets, to ensure that the characteristics 
of the projects funded by the Facility are in line with the condition set out in Annex VI to 
the RRF Regulation.  

Overall,  the  measures  contributing  to  the  climate  objective  account  for  EUR  2.032  billion, 
representing 58.7% of the total financial allocation under the RRF to Austria’s plan.  

Climate target 

Out  of  the  16  subcomponents  in  Austria’s  recovery  and  resilience  plan,  eight  include 
investments contributing to the climate and environmental objectives.  

Investment  in  sustainable  mobility  account  for  the  largest  contribution  (component  1.B, 
EUR 848.6 million) to the climate target. The investments comprise the construction of new 
railways  and  electrification  of  regional  railways  (1.B.5),  promotion  of  zero-emission  buses 
and vehicles, including charging and refuelling stations (1.B.3, 1.B.4). In addition, a general 
investment  premium  scheme  (Green  investments  in  enterprises,  2.D.3)  will  support,  among 
others,  private  investment  in  e-mobility  and  alternative  fossil-free  drives,  with  an  expected 
climate contribution of EUR 298.5 million. 

Investment  in  renovation  of  buildings,  energy-efficiency  and  renewable  energy  will 
provide a further significant contribution to the climate target. They promote the exchange of 
oil  and  gas  heating  systems  in  31 800  dwellings  by  renewable  technology  such  as  biomass, 
heat  pumps and efficient district  heating (EUR 158.92 million, 1.A.2). Support  for complex 
thermal  refurbishment  of  2 250  family  houses  is  aimed  at  reducing  emissions  as  well  as 
energy  poverty  (EUR  50  million,  1.A.3,).  Moreover,  thermal  renovation  of  buildings, 
renewable  energy  and  energy-saving  measures  will  be  supported  also  by  the  general 
investment premium scheme for enterprises (2.D.3), providing a climate contribution of EUR 
205.5 million. 

The  recovery  and  resilience  plan  contains  also  measures  promoting  biodiversity, 
circular  economy,  climate  adaptation  and  prevention  of  climate  related  risks 
(component 1.C)  that  contribute  EUR 140  million  to  the  climate  target.  They  comprise 
investments in the preservation of biodiversity, restoration of degraded ecosystems, and a new 
biodiversity  monitoring  system.  Circular  economy  will  benefit  from  investments  in  reverse 
vending systems and measures to increase the reuse quota of beverage containers (1.C.3), in 
retrofitting of old and construction of new waste sorting facilities (1.C.4), and from a repair 
bonus that aims to raise the share of reused and repaired electronic equipment (1.C.5). While 
this  set  of  measures  aims  to  reduce  waste  upfront,  it  will  also  ensure  that  materials  are 
recycled  and  kept  in  circulation  as  long  as  possible.  As  result  of  these  investments,  the 
collection  rate  of  plastic  beverage  packaging  is  expected  to  increase  from  70%  to  80%, 
whereas  by  2026  at  least  50%  of  Austrian  plastic  waste  is  expected  to  be  sorted  for  further 
recycling (it was 33% in 2018). With a focus on adaptation to climate change in town centres 
(4.B.3, EUR 44 million climate contribution), the plan includes support for municipalities and 
businesses  for  their  investment  in  building  renovation,  façade  greening,  high-efficiency 
district heating, and rehabilitation of brownfield sites. 

The  recovery  and  resilience  plan  puts  a  significant  focus  on  renewable  energy  and 
decarbonisation of industry. Aiming to achieve substantial savings in industry-related GHG 
emissions,  energy  consumption  and  use  of  raw  materials,  the  recovery  and  resilience  plan 

50 

 
 
 
proposes  investment  in  large-scale  transformative  projects  (1.D.2),  including  highly 
innovative pilots and demonstration activities. Similarly, the planned IPCEI Hydrogen (3.D.2) 
aims  to  promote  integrated  projects  along  the  hydrogen  value  chain,  covering  production, 
distribution,  storage  and  application,  in  particular  in  energy-intensive  industries  and  the 
transport sectors. Together, these two measures contribute for EUR 225 million to the climate 
target of Austria’s recovery and resilience plan. 

Green transition 

Austria’s recovery and resilience plan shows a strong ambition to accelerate the green 
transition  and  to  address  the  challenges  resulting  therefrom.  The  investments  and  reforms 
included  in  the  recovery  and  resilience  plan  are  generally  in  line  with  the  context  of  the 
European Green Deal and put in perspective both the environmental and economic benefits of 
the green transition to foster recovery and resilience. 

The measures in the plan follow the policy objectives of, and the challenges identified by 
the NECP. They contribute to Austria’s 2030 energy and climate targets and to its goals to 
decarbonise the electricity system by 2030 and achieve climate neutrality by 2040. The plan 
puts  emphasis  on  sustainable  mobility  and  buildings,  thus  addressing  the  two  biggest  GHG 
emitting sectors in Austria – with several components dedicated to this goal. The investment 
measures will bring positive climate and environmental effects, with a lasting impact that will 
be amplified by the reforms proposed in the recovery and resilience plan.  

Energy efficiency and just transition 

Investment  in  renovation  and  energy  efficiency  of  buildings,  in  renewable  energy  and 
climate-friendly  heating  will  lead  to  lower  levels  of  GHG  emissions,  will  improve  climate 
change  adaptation,  reduce  air  pollution  and  energy  consumption,  and  are  estimated  to  also 
generate tangible employment effects. These effects will be reinforced by a regulatory reform 
(Renewable Heating Law, 1.A.1) that aims to accelerate the phasing out of oil boilers and the 
roll-out of renewable heating technology. Investment in renewable heating systems (Exchange 
of oil and  gas  heating systems, 1.A.2) will save at  least  184 000t  CO2  equivalents  annually. 
Furthermore, the design of the proposed investment reflects also just transition considerations 
(‘leave no one behind’) by targeting low-income households. The planned renovation projects 
under the Combating energy poverty programme (1.A.3) are expected to decrease the energy 
consumption per home by 67% on average.  

Sustainable mobility 

The  recovery  and  resilience  plan  acknowledges  the  specific  challenge  and  strategic 
importance of making the transport sector more sustainable for achieving Austria’s 2030 
climate  targets  and  climate  neutrality  by  2040.  It  contains  measures  promoting  the 
development  and  use  of  cleaner  mobility  through  a  range  of  investments,  covering  various 
means of public and private transport. Investment in new railway infrastructure, zero-emission 
busses and vehicles, and charging stations will be accompanied by useful reform measures. A 
new  comprehensive  Mobility  Masterplan  2030  (1.B.1)  will  frame  various  sector-specific 
strategies and actions that are necessary to bring about a permanent and continuous reduction 
in  transport-related  CO2  emissions  below  the  peak  in  2019.  The  proposed  Introduction  of 
1-2-3  Climate  ticket  (1.B.2)  will  facilitate  the  modal  shift  towards  rail  and  public  transport. 
This  reform  will  expand  support  for  nationwide  and  regional  public  transport  services  and 

51 

 
 
simplify the currently complex price and tariff structure, by creating a joint ticketing platform. 
The  investment  in  clean  vehicles  and  e-mobility  infrastructure  (1.B.3,  1.B.4,  2.D.3)  will  be 
reinforced  by  a  regulatory  reform  (4.D.11),  simplifying  the  permit  procedure  for  private 
investment in solar energy, charging and refuelling infrastructure. The first stage of the eco-
social  tax  reform  adopted  in  2020  contained  useful  elements  greening  the  transport-related 
taxes.  A  second  stage  of  the  Eco-social  tax  reform  (4.D.5)  included  in  the  recovery  and 
resilience  plan,  which  will  introduce  a  pricing mechanism  for  CO2  emissions  in  non-ETS 
sectors  including  road,  will  provide  further  impetus  for  sustainable  mobility  transition. 
Overall, the reform is expected to reduce annual CO2 emissions by at least 2.6 million tonnes 
by 2030. 

Decarbonisation and renewable energy, including hydrogen  

Increased  investment  efforts  are  needed  to  decarbonise  Austria’s  energy-intensive 
industries, to reach Austria’s goal of 100% renewable electricity by 2030, to reach its energy 
efficiency  target,  and  to  adapt  energy  infrastructure  to  the  expected  increased  share  of 
renewables.  Austria  has  a  strong  industrial  base  with  a  high  share  of  energy-intensive 
industries,  in  particular  iron  and  steel,  stone  and  earth,  paper  and  pulp,  refinery  and 
petrochemicals. The recovery and resilience plan contains a dedicated instrument (1.D.2) for 
major projects aimed at decarbonising industry, increasing its resource and energy efficiency, 
supporting  eco-innovation  and  advanced  technology  to  reduce  the  environmental  impact  of 
the  treatment  of  hazardous  waste.  The  planned  IPCEI  Hydrogen  (2.D.3)  promotes  the 
production,  storage  and  application  of  renewable  hydrogen,  aiming  to  reduce  energy 
consumption and GHG emissions, and to establish an integrated market for green hydrogen, 
which is deemed a key enabler for Austria’s energy transition. These investment efforts will 
be supported by a major reform of the national support system for renewables through a new 
Renewables Expansion Law (1.D.1). This reform envisages market premiums and investment 
support for wind power, hydropower, solar  energy  and biomass,  aimed  at  increasing  annual 
electricity  generation  from  renewables  by  27  TWh  by  2030  and  to  produce  5  TWh  of 
renewable gases, including hydrogen. 

Environmental policies, including biodiversity and circularity  

The  recovery  and  resilience  plan  contains  relevant  actions  on  biodiversity,  circular 
economy  and  climate  adaptation  (subcomponents  1.C  and  4.B)  that  will  help  meet  the 
Union’s  targets  for  environmental  policy  and  protect  Austria’s  richness  in  biodiversity, 
natural carbon sinks and the above-average size of its Natura 2000 network. Investment in a 
new  biodiversity  fund  and  a  biodiversity  monitoring  system  (1.C.2)  will  reinforce  the 
implementation  of  Austria’s  biodiversity  strategy.  The  investment  in  the  resilience  and 
greening  of  municipalities  will  be  mutually  reinforced  by  a  new  Soil  protection 
strategy (4.B.1).  This  reform  is  expected  to  address  challenges  caused  by  the  intensive  and 
quickly  expanding  land-take  in  Austria  that  affects  the  resilience  to  floods  and  heat  waves, 
fragments open cultivated landscapes and leads to soil sealing and high infrastructural follow-
up costs. 

Investment in recycling, reuse, repair and better waste management (1.C.3, 1.C.4, 1.C.5) 
will also benefit from regulatory reforms. A new take-back system in the retail sector will be 
combined  with  a  new  legal  framework  for  single-use  plastic  and  metal  beverage 
packaging (1.C.1). This is particularly relevant for the plastic packaging recycling rate that is 
currently significantly below the EU 2025 target, leading also  to  very high shares of plastic 

52 

 
 
waste  (71%)  and  mixed  plastic  (over  90%)  waste  being  incinerated.  The  modernisation 
investment  in  plastic  waste  sorting  facilities  will  be  underpinned  by  a  reform  of  the  Waste 
management law (1.C.1). 

Many of the measures in the recovery and resilience plan will help improve air quality 
standards that currently suffer mainly from transport, heating and industry related emissions. 
Although they are not specifically dedicated to this objective, the investments and reforms in 
several  components of the recovery and resilience plan, ranging from  eco-friendly mobility, 
energy-efficiency,  renewable  energy,  greening  of  town  centres,  to  biodiversity  and  climate 
adaption measures, will all indirectly contribute to better air quality in Austria. 

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged,  the  recovery 
and  resilience  plan  is  expected,  to  a  large  extent,  to  make  a  significant  contribution  to 
green transition and to addressing the challenges resulting from it and ensures that at 
least  37%  of  its  total  allocation  contribute  to  the  climate  target.  This  would  warrant  a 
rating of A under criterion 2.5 of Annex V to the RRF Regulation. 

4. 6 Digital transition  

Digital tagging 

Austria’s  recovery  and  resilience  plan  correctly  follows  the  methodology  for  digital 
tagging  set  out  in  Annex  VII  to  the  RRF  Regulation,  by  identifying  intervention  fields  and 
corresponding  coefficients  for  the  calculation  of  each  measure’s  contribution  to  the  digital 
objectives.  The  measures  often  consist  of  several  sub-measures.  Where  that  is  the  case,  the 
recovery and resilience plan indicates an intervention field for each sub-measure, and digital 
tagging  is  correctly  assigned  at  sub-measure  level.  The  choice  of  intervention  fields  for  the 
digital transition is well justified and reflects the nature, focus, objective or expected outcome 
of the investments included in the component.  

Overall,  the  Austrian  plan  allocates  to  digital  objectives  52.8%  of  its  total  financial 
allocation under the RRF; therefore, the digital target of 20% is largely surpassed. The 
main  contributions  to  this  target  comes  from  components  2,  Digital  recovery,  and  3, 
Knowledge-based  recovery.  Particularly  prominent  within  component  2  is  the  measure  to 
expand the broadband coverage where EUR 891 million are earmarked for the deployment of 
Gigabit-capable networks (2.A.2). Component 3 is the second largest contributor to the digital 
objective  with  EUR  352  million.  It  includes  measures  to  promote  quantum  science  and 
technologies (3.A.2), biomedical research (3.A.3), and digital research infrastructures (3.A.4). 
Investments  for  the  digitalisation  of  the  healthcare  and  cultural  sectors  are  included  in 
component 4, Just recovery, and amount to EUR 26.5 million.  

Digital transition 

The Austrian recovery and resilience plan addresses the challenges related to the digital 
transition  with  a  broad,  cross-cutting  approach.  Component  2,  Digital  recovery,  is 
completely  dedicated  to  the  digital  transition  and  consists  of  six  investments  and  three 
complementing  reforms  focusing  on  the  expansion  of  broadband  and  the  digitalisation  of 
schools, the public administration, and enterprises. Component 3, Knowledge-based recovery, 
also  devotes  56%  of  its  resources  to  the  digital  transition.  Component  4,  Just  recovery, 
includes investments into the digitalisation of healthcare services and cultural heritage.  

53 

 
 
The measures in the Austrian recovery and resilience plan that contribute to the digital 
transition  or  help  address  the  related  challenges  are  aligned  with  the  strategic  action 
plan  ‘Digital  Austria  in  2050’.  They  are  also  consistent  with  the  Austrian  Broadband 
Strategy 2030. These measures are also oriented towards various European initiatives such as 
the  EU  digital  strategy,  the  EU  skills  agenda,  the  European  Pillar  of  Social  Rights,  the 
European Education Area, and the Digital Education Action Plan. 

The measures in the plan cover all four flagships related to the digital transition. Overall, 
the digital measures in the plan are well aligned with the digital objectives of the RRF. The 
Austrian  plan  features  at  least  one  reform  or  investment  from  each  of  the  four  flagships  of 
Modernise, Connect, Scale-up and Reskill and Upskill laid down in the Commission’s Annual 
Sustainable Growth Strategy (COM/2020/575).  

The plan includes considerable investments into connectivity. Subcomponent 2.A focuses 
on  the  widespread  deployment  of  Gigabit-capable  networks  and  the  establishment  of  new 
symmetrical Gigabit connections in underserved, disadvantaged and rural areas. Investments 
will  be  allocated  towards  the  two  funding  directives,  Access  and  OpenNet,  of  the  Austria 
Broadband  Programme  2030.  Access  has  the  objective  to  improve  broadband  availability  in 
those areas of Austria, which, due to a market failure, are not or are insufficiently developed 
by  private  operators.  OpenNet  has  the  objective  to  support  the  nationwide  broadband 
availability of at least 100 Mbit/s over a planning horizon of up to six years, including a one-
year  planning  phase  for  large  projects.  The  investment  is  expected  to  be  able  to  provide 
Gigabit connections to between 150 000 and 200 000 households. Additional investments by 
telecom operators triggered through the RRF are estimated at more than EUR 2 billion. The 
sustainable  and  fair  expansion  of  the  Gigabit  network  is  expected  to  promote  regional 
cohesion and to have a lasting impact on the digital transition, competitiveness and resilience 
of firms.  

The plan includes significant investments in the digitalisation of schools and education. 
Austria performs below the EU average regarding the use of computer and internet in lower 
secondary  education  and  provision  of  IT-based  teaching  varies  greatly  between  schools. 
Distance learning due to the COVID-19 pandemic exacerbated unequal learning opportunities 
because  of  a  lack  of  devices  and  digital  competences.  To  address  these  challenges,  the 
reforms and investments under subcomponent 2.B provide access to digital education and to 
digital  equipment  for  students  and  support  the  digitalisation  of  teaching  practices  of  lower 
secondary  schools.  The  investment  into  digital  terminal  equipment  is  planned  to  provide 
gradually  around  80  000  students  in  the  fifth  grade  with  digital  devices.  All  schools  are 
supposed  to  implement  digital  teaching  and  learning  experiences.  The  measures  are 
complemented by training for educators, development  of basic  IT infrastructure for schools, 
the  establishment  of  a  quality  label  for  learning  apps,  and  the  development  of  a  ‘Digital 
School  Portal’  and  a  portal  for  digital  teaching/learning  resources  (Eduthek).  All  these 
measures will be key to address the challenges Austria faces with the development of digital 
skills, digital inclusion and ensuring access to quality education and equal opportunities.  

Subcomponent  2.D  (Digitalisation  and  greening  of  businesses)  dedicates  significant 
investments (EUR 101 million) to the digitalisation of businesses, especially SMEs. In the 
DESI 2020 results, Austria performs below the EU average regarding the integration of digital 
technology by businesses. Austrian companies, especially SMEs, do not take full advantage of 
the use of digital technologies such as cloud services or big data. The digitalisation of SME 

54 

 
 
package  (2.D.1)  fosters  the  digitalisation  of  SMEs  (KMU.DIGITAL)  by  providing  advisory 
support  on  digital  business  models  and  processes  (including  resource  optimisation),  e-
commerce  and  online  marketing,  IT  and  cybersecurity,  and  digital  administration.  The 
measure  also  provides  incentives  for  financing  of  new  investments  in  digitalisation  projects 
for  SMEs  and  also  supports  the  implementation  of  e-commerce  projects  of  SMEs,  new 
investments  in  connection  with  e-commerce,  and  related  services  by  external  providers 
(KMU.E-Commerce).  Finally,  the  COVID-19  investment  premium  for  companies  promotes 
new investments  in  depreciable  fixed assets of Austrian businesses, notably those  related to 
digital  solutions  and  digital  infrastructure  (2.D.2).  Overall,  more  than  15  000  SMEs  are 
expected  to  benefit  from  the  investments  within  the  framework  of  the  programmes 
KMU.DIGITAL  and  KMU.E-Commerce,  and  around  10  000  enterprises  from  the  digital 
investments  via  the  COVID-19  investment  premium.  These  investments  should  boost  the 
competitiveness  of  firms  and  significantly  address  the  challenges  Austria  faces  with  the 
adoption  of  digital  technologies.  As  a  result,  these  investments  are  expected  to  have  long-
lasting effects contributing to the economy’s resilience and growth.  

The  recovery  and  resilience  plan  includes  significant  investments  into  e-government, 
digital  public  services  and  IT  consolidation.  The  investments  in  the  digitalisation  of  the 
public administration (2.C.2) amount to EUR 160 million and include (i) cross-departmental 
projects to implement  IT consolidation in the federal  government, (ii) projects with a cross-
departmental  impact  for  the  development  of  citizen  and  business  services,  and  (iii)  projects 
aimed at accelerating and improving the efficiency of procedures. These investments will also 
implement  the  once-only  principle  in  order  to  reduce  the  administrative  burden  on  citizens 
and businesses (2.C.1). These investments are expected to have a long-lasting impact on the 
digital  transition  of  the  public  administration  and  will  make  an  important  contribution  to  a 
citizen-  and  service-oriented  administration  with  a  modern  digital  infrastructure.  These 
investments will also be key to offer more digital services, to increase efficiency and quality 
of services, as well as to limit the administrative burden on companies and the administration.  

Subcomponent 3.A (Research) of the recovery and resilience plan allocates considerable 
investments to quantum research, life sciences, and digital infrastructures.  The measure 
Quantum Austria (3.A.2) funds research infrastructures (including software development) and 
research  cooperation  to  expand  the  knowledge  base  development  of  technological  concepts 
for quantum computing / simulation / communication and to further establish technologies for 
the  entire  field  of  quantum  sciences  (hardware  and  software).  Another  digital  investment  is 
planned to develop a new centre for biomedicine at the campus of the Medical University of 
Vienna, including the construction, infrastructure and digital equipment for research (3.A.3). 
The  centre’s  focus  lies  in  disease  monitoring  and  prevention,  and  in  biomedical  research. 
Further  investments  are  allocated  towards  digital  research  infrastructures  for  the  sustainable 
development of universities (3.A.4). The investments under subcomponent 3.A (Research) are 
flanked  by  a  research,  technology  and  innovation  strategy  (FTI  Strategy  2030,  3.A.1). 
Overall,  the  subcomponent  is  expected  to  boost  competitiveness,  foster  research  and 
innovation and support Europe in ensuring technology sovereignty.  

Subcomponent  3.B  (Upskilling  and  reskilling)  includes  significant  investment  into  the 
digital skills of the adult population. This includes a reform and investment to (i) improve 
the  incentive  and  material  conditions  for  the  unemployed  to  participate  in  training  or  other 
qualification measure (education bonus, 3.B.1), and (ii) increase the availability of retraining 

55 

 
 
and  further  training  measures  (3.B.2).  The  digitalisation  components  of  the  retraining  and 
further training measures promote training in subject-specific occupational fields and basic IT 
skills. Overall, around 40 000 unemployed are expected to benefit from the education bonus 
and  around  94 000  people  from  retraining  and  further  training  measures.  These  investments 
are  central  to  addressing  the  impact  of  the  COVID-19  pandemic  and  the  impact  of  societal 
and  technological  changes.  The  investments  contribute  to  the  digital  transition  and  help 
address the related challenges. 

The Austrian recovery and resilience plan includes a planned IPCEI on microelectronics 
and connectivity (3.D.1). The aim is to strengthen the microelectronics sector where Europe 
has so far been dependent on imports from third countries (e.g. the development of innovative 
networks and microelectronics technologies). Innovations stemming from research projects to 
be  funded  within  the  framework  of  the  planned  IPCEI  can  be  expected  to  contribute  to  the 
development  of  key  technologies,  the  modernisation  of  energy  systems  and  thus  also  to  the 
European and national digitalisation goals. The development of semiconductor technology, to 
be  supported  within  the  scope  of  this  project,  provides  the  foundation  for  all  digital 
applications  and  related  projects  and  is  thus  an  important  prerequisite  for  the  digital 
transformation. 

Other investments in digitalisation are planned for the cultural sector, allocating EUR 
16.5 million towards the digitalisation of cultural heritage  (4.C.4). This includes steps (i) 
to  modernise  the  portal  ‘Kulturpool,’  which  brings  together  the  data  from  different  cultural 
heritage  institutions,  makes  it  available  digitally  and  allows  for  the  re-use  of  the  collected 
data; and (ii) to digitalise outstanding works of art and cultural heritage for their preservation 
and accessibility by a wider public. The education sector will also benefit from this initiative 
by having access to larger and improved learning resources. These investments are expected 
to have a lasting impact and to contribute to the digital transition of the cultural sector. 

The  plan  also  includes  investments  in  the  digitalisation  of  health  services  for 
mothers (4.A.3).  Investments  cover  the  development,  planning  and  implementation  of  the 
electronic  mother-child  passport  platform,  which  ensures  an  optimised  multi-professional 
usability  for  all  users  by  including  user-friendly  software  interfaces  for  people  with  limited 
digital  skills,  interfaces  to  other  software,  and  the  implementation  of  multilingual  digital 
communication 
improve  health 
opportunities for pregnant and breastfeeding women and their children and to increase social 
cohesion, by reaching out particularly to those women who do not necessarily take up these 
services. These investments contribute to the digitalisation of the health services for mothers.  

tool.  The  electronic  mother-child  passport  aims 

to 

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged,  the  recovery 
and  resilience  plan  is  expected,  to  a  large  extent,  to  make  a  significant  contribution  to 
the digital transition and to addressing the challenges resulting from it and ensures that 
at least 20% of its total  allocation help support digital objectives. This  would warrant  a 
rating of A under criterion 2.6 of Annex V to the RRF Regulation. 

4.7 Lasting impact of the plan  

The  recovery  and  resilience  plan  includes  an  ambitious  package  of  measures  aimed  at 
addressing challenges identified in the context of the European Semester.  The measures 
in the plan also facilitate the green and digital transitions and strengthen the growth potential, 

56 

 
 
job  creation  and  economic  and  social  resilience  of  Austria.  The  proposed  reforms  and 
investments  are  expected  to  have  a  lasting,  positive  impact  on  the  Austrian  economy  and 
society. 

Most of the components of the plan are assessed as having a lasting impact on Austria. 
The  measures  presented  in  this  respect  comprise  structural  changes  to  the  administration  or 
relevant institutions and policies. The lasting impact refers to policy areas where the estimated 
long-term  impact  on  growth  potential  and  employment  is  significant,  as  specified  in 
Section 4.3 above, but also in areas where structural changes are expected to improve social 
and  cultural  aspects  that  are  not  necessarily  quantifiable.  Also,  the  plan  will  contribute  to 
achieving  the  objectives  of  the  new  Industrial  Strategy28  for  fostering  the  twin  transition, 
making  EU  industry  more  competitive  and  enhancing  Europe’s  open  strategic  autonomy. 
Implementation can build on Europe’s assets as the home of industry, talents, innovators and 
creators, values and social market traditions. 

Structural change in the administration and institutions  

The  plan  brings  about  structural  changes  in  the  country’s  public  administration  and 
related institutions. This is particularly the case for the digitalisation of the country’s public 
administration  (subcomponent  2.C  Digitalisation  of  the  public  administration),  digitalisation 
in  the  primary  health  care  sector  and  the  mother-child  pass  platform  (subcomponent  4.A 
Health care), and the reforms on the start-up package, and setting up a one-stop-shop for the 
long-term  unemployed  (subcomponent  4.D  Resilience  through  reforms).  In  many  cases,  the 
measures in various components of the plan are designed to reduce administrative burden and 
increase the level of digitalisation of relevant institutions, which is expected to have a lasting 
impact on the quality of services and the business environment.  

Investments  in  the  digitalisation  of  the  public  administration  have  a  lasting  impact  by 
increasing  the  number  of  digital  public  services  and  consolidating  IT  infrastructures, 
which  increase  quality  and  efficiency  of  the  public  administration.  One  major  measure 
includes  the  support  to  cross-departmental  projects  to  implement  IT  consolidation  in  the 
Federal Government (2.C.2). The departments often use different data centres, software, and 
hardware  as  well  as  service  providers  resulting  in  avoidable  costs  and  fluctuating  quality. 
Furthermore,  measures  intend  to  facilitate  projects  with  a  cross-departmental  impact  for  the 
development of citizen and business services and aim to accelerate and improve the efficiency 
of procedures.  

The Once-only reform complements the significant investments into the digitalisation of 
the  public  administration  and  has  a  lasting  impact  by  reducing  the  administrative 
burden on citizens and businesses  (2.C.1). Companies  and  authorities  are  confronted with 
high  financial  and  organisational  expenses  because  of  information  obligations  under  federal 
law.  In  2006,  about  5 700  information  obligations  caused  annual  administrative  costs  for 
companies amounting to about EUR 4.3 billion29. With the Once-Only principle, data will be 
reported  once  to  the  administration,  and  a  cross-authority  data  exchange  will  be  possible. 

28  COM(2020)  102  final,  https://ec.europa.eu/info/sites/info/files/communication-eu-industrial-strategy-march-
2020_en.pdf   

29 Baseline survey conducted by the Federal Ministry of Finance. 

57 

 
 
                                                           
Therefore, the data management of the Austrian administration will be re-organised to create 
the basis for building further administrative reform projects. 

The  reform  One-stop-shop  for  long-term  unemployed  is  expected  to  have  a  lasting 
impact  in  Austria’s  social  security  system  (4.D.10).  Many  administrative  bodies  need  to 
cooperate  to  create  a  one-stop  shop  by  coordinating  and  ensuring  access  to  services  of 
different  institutions  (health  insurance,  rehabilitation  via  pension  insurance,  federal  social 
welfare  office,  various  provincial  institutions  such  as  family  counselling  centres  or  care 
institutions,  education  directorates,  social  welfare  agencies,  etc.).  The  reform  aims  to  ease 
access  to  training  and  qualification,  and  to  promote  inclusive  employment  for  long-term 
unemployed.  

Lasting  structural  changes  in  the  administration  of  health  care  are  implemented 
through  the  reform  and  investments  into  primary  care  and  the  introduction  of  an 
electronic  mother-child  passport.  The  primary  health  care  measures  aim  to  establish 
primary care units  (PVE) at  the federal  level  (4.A1, 4.A.2). These measures will ensure the 
provision  of  high-quality  health  and  long-term  care  throughout  Austria  and  guarantee  the 
availability  of  well-trained  health  personnel.  Also, 
the  electronic  mother-child 
passport (4.A.3) is expected to have a positive and permanent impact on the Austrian health 
care system. 

Several  measures  aim  to  reduce  administrative  burden  and  to  improve  the  business 
environment. The  reform  start-up package (4.D.8) creates  a new company  form  ensuring  a 
non-bureaucratic  establishment  procedure  and  with  a  low  start-up  capital  and  includes 
simplification  measures  such  as  the  Employee  Participation,  Once-only  and  Grace  Period 
Implementation. Furthermore, under the liberalisation of commercial law and the provision of 
business-oriented services three measures – the facilitation of business transfers (4.D.11), the 
amendment of the Occasional Transport Act (4.D.11), and the implementation of permit-free 
photovoltaic systems and e-vehicle charging stations (4.D.11) – are expected to have a lasting 
impact  on  the  justice  system.  They  are  also  expected  to  contribute  to  the  green  and  digital 
transformation  by  reducing  the  bureaucratic  burden  and  legal  hurdles  for  the  installation  of 
photovoltaic systems and e-charging stations. 

Structural changes in policies  

Structural changes in policies are envisaged in all subcomponents of the plan. Many of 
these changes help  enhance economic  growth, contribute to  job growth, and mitigate effects 
of  the  COVID-19  crisis. The  comprehensive  reform  and  investment  package  within  the 
Austrian recovery and resilience plan (i) focuses on the green and digital transition; (ii) aims 
to  improve Austria’s  performance  in  innovation, research, and  technology;  (iii)  focuses also 
on enhancing human capital with targeted active labour market and education measures; and 
(iv)  aims  to  address  weaknesses  of  the  Austrian  business  environment  and  to  improve  the 
framework conditions for start-ups.  

Several  investments  and  reforms  related  to  GHG  reduction  are  expected  to  have  a 
lasting  impact.  These  cover  measures  to  move  towards  increasing  the  use  of  renewable 
energy  sources  (subcomponent  1.A  Renovation  wave),  environmentally  friendly  transport 
(subcomponent  1.B  Environmental  mobility)  and  other  investments  in  green  transition.  The 
Renewable  Heating  Law  (1.A.1)  will  prohibit  the  installation  of  heating  systems  that  are 

58 

 
 
operated with liquid or solid fossil fuel from 2022 and regulates the framework conditions for 
the replacement of old heating systems. It is complemented by investments to replace climate-
damaging  oil  and  gas  heating  systems  by  climate-friendly  ones  (1.A.2).  Furthermore,  social 
resilience will be strengthened by promoting measures to sustainably reduce the energy costs 
for  low-income  households  (1.A.3).  Also,  the  renovation  wave  will  ensure  that  jobs  are 
created  or  secured.  Regarding  environmentally  friendly  transport,  the  Austrian  Mobility 
Masterplan  2030  (1.B.1),  the  introduction  of  the  1-2-3  climate  tickets  (1.B.2),  the  sizable 
investment in emission-free vehicles (1.B.3) and their infrastructure (1.B.4), and the exclusive 
use of renewable energy (electricity and hydrogen) for their operation are expected to bring 
about lasting changes. These measures will contribute positively to sustainable and inclusive 
growth  and  to  boosting  the  growth  potential  of  the  Austrian  economy.  Moreover,  the  eco-
social  tax  reform  and  reform  proposal  for  climate  governance  of  subcomponent  4.D 
Resilience  through  reforms,  will  help  reduce  the  economic  costs  of  climate  change  and 
foster green investments. This is expected to contribute positively to the growth perspective of 
the  Austrian  economy.  Therefore,  these  measures  are  expected  to  help  reach  the  climate 
targets in 2030 and achieve the aim of carbon neutrality by 2050 in the European Union.  

Subcomponents 2.A and 2.B, providing for the broadband expansion and digitalisation 
of  schools  respectively,  are  expected  to  lead  to  lasting  structural  changes  by  their 
positive  effect  on  territorial  cohesion.  They  aim  to provide equal  opportunities  for  people 
living  in  urban  regions  and  rural  areas,  to  enhance  future  territorial  development  and  to 
strengthen  Austria  as  a  business  location,  where  all  regions  can  offer  the  same  services. 
Therefore,  they  are  expected  to  contribute  to  Austria’s  growth  potential  and  to  enhancing 
the competitiveness of its economy.  

Lasting  changes  are  also  expected  in  the  approach  of  provision  of  health  care  services 
under  subcomponent  4.A  Health  care  and  by  the  long-term  care  reform  and  by  the 
implementation  of 
subcomponent  4.B  Resilient 
municipalities. These measures aim to structurally increase accessibility to the related health 
care services and intend to support in particular people with limited access to such services. 

community  nursing  under 

Lasting impact 

In the long term, the economic impact is mostly driven by efficiency gains from research 
and innovation, and, in particular, by the digital transformation, while in the short term, 
public  and  private  investments  are  the  main  drivers.  Relative  to  a  scenario  without  the 
RRF,  Austria  estimates  that  the  RRF-financed  investments  and  the  reforms  accompanying 
them are expected to contribute to a 0.4% increase in GDP after two years, a 0.9% increase 
after  five  years  and  a  1.2%  increase  after  twenty  years.  The  corresponding  impact  on 
employment is estimated at 0.3%, 0.5% and 0.6%, respectively. The RRF is also estimated to 
have  a  lasting  impact  on  the  budget  balance,  leading  to  an  improvement  of  0.2  percentage 
points  after  two  years,  0.3  percentage  points  in  five  years  and  0.6  percentage  points  in  20 
years. 

Taking  into  consideration  all  the  reforms  and  investments  envisaged  by  Austria  in  its 
recovery and resilience plan, their implementation is expected, to a large extent to bring 
about  a  structural  change  in  the  administration  or  in  relevant  institutions  and  in 
relevant  policies  and  to  have  a  lasting  impact.  This  would  warrant  a  rating  of  A  under 
criterion 2.7 of Annex V to the RRF Regulation. 

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4.8 Milestones, targets, monitoring and implementation 

Adequacy of the structure tasked with the implementation of the plan, monitoring of progress 
and reporting 

The  Ministry  of  Finance  is  the  overall  coordination  body  of  Austria’s  recovery  and 
resilience  plan,  while  the  respective  ministries  are  responsible  for  the  implementation, 
monitoring  and  control  of  their  measures.  The  Ministry  of  Finance  is  the  overall 
coordination body for the implementation, monitoring of progress, and reporting on the plan. 
The  individual  ministries  are  responsible  for  the  implementation,  monitoring  and  control  of 
the  measures  within  their  respective  responsibility.  The  responsible  ministries  are  clearly 
identified for all reform and investment measures and have to indicate a contact point that is 
the  responsible  entity  for  reporting  on  the  milestones  and  targets.  The  ministries  have 
appointed  the  entity  responsible  for  drawing  up  the  management  declaration.  Each  ministry 
must ensure that their management declarations comply with all the requirements as set out in 
the Regulation. The Ministry of Finance will produce a central management declaration based 
on  the  individual  management  declarations  and  will  submit  the  payment  requests  after  the 
corresponding milestones and targets have been fulfilled.  

The plan describes adequately the intended monitoring and reporting mechanisms. The 
plan clearly describes that individual ministries, responsible for the implementation of certain 
measures  of  the  plan,  are  responsible  for  audit,  control,  and  reporting  on  the  progress  of 
milestones and targets. It is also within the responsibility of the ministries to keep the proofs 
and  records  related  to  the  achievement  of  milestones  and  targets,  in  order  to  enable  a 
verification at a later stage, in particular to ensure verification of this information in line with 
the procedures of the European Commission. The Ministry of Finance in its role as the overall 
coordinating  body  will  constantly  update  and  publish  a  report,  reflecting  the  progress  of 
milestones and targets, as reported by the responsible ministries. The Ministry of Finance asks 
the  individual  ministries  to  flag  any  possible  delay  in  achieving  milestones  and  targets  and 
thus would be in a position to inform also the European Commission about potential delays. 

Milestones, targets and indicators 

The  milestones  and  targets  in  the  Austrian  plan  constitute  an  appropriate  system  for 
monitoring the plan’s implementation. The monitoring indicators are in general sufficiently 
clear  and  comprehensive  to  ensure  that  their  completion  can  be  traced  and  verified.  The 
milestones and targets usually represent the key elements of the measures and as such can be 
considered  relevant  for  their  implementation.  They  reflect  adequately  the  overall  level  of 
ambition  of  the  plan  and  appear  realistic.  The  verification  mechanisms,  data  collection,  and 
responsibilities described by the Austrian authorities appear sufficiently robust to adequately 
justify the disbursement requests once the milestones and targets are completed. The number 
of  milestones  and  targets  appears  commensurate  to  the  size  of  the  reform  and  investment 
package.  

Overall,  milestones  and  targets  are  designed  around  the  life-cycle  of  reforms  and 
investments  and  ensure  the  proper  implementation  of  the  measures.  For  the  reform 
measures, the milestones, and targets have a clear focus on ensuring implementation and on 
the expected outcomes. As regards the investment measures, there is, wherever possible and 
reasonable,  a  milestone  or  target,  which  allows  verifying  the  full  implementation  of  the 

60 

 
 
investment.  For  measures  with  inherent  uncertainty  about  the  outcome,  e.g.  because  they 
incentivise  research  and  development  or  are  strongly  demand-driven,  preference  has  been 
given to the disbursement of funds. This has been complemented with further milestones or 
targets  to  ensure  also  the  qualitative  success  of  the  measure,  wherever  possible  and 
reasonable.  For  a  number  of  measures,  appropriate  intermediate  milestones  or  targets  have 
been  chosen  to  check  if  implementation  is  underway,  with  a  view  also  to  allow  possible 
corrective action, in case of major bottlenecks or delays are identified.  

Overall organisational arrangements 

The Ministry of Finance will ensure the overall coordination of the implementation and 
the monitoring and control system. The division of tasks and the interlocking between the 
monitoring  and  the  audit  and  control  systems  are  described  in  a  comprehensive  way  in  the 
plan.  While  the  implementation  and  the  monitoring  and  control  tasks  for  the  measures  are 
delegated to the individual ministries, it is evident that the Ministry of Finance will take full 
responsibility  to  ensure  that  all  the  requirements  related  to  the  implementation  and  the 
monitoring and control system are fulfilled.  

The arrangements proposed by Austria in its recovery and resilience plan are expected 
to be adequate to  ensure  effective  monitoring and implementation of the  recovery  and 
resilience  plan,  including  the  envisaged  timetable,  milestones  and  targets,  and  the 
related  indicators.  This  would  warrant  a  rating  of  A  under  the  assessment  criterion  2.8  of 
Annex V to the RRF Regulation. 

4.9 Costing  

Austria  has  provided  individual  cost  estimates  for  all  investments  included  in  the 
recovery  and  resilience  plan  for  which  funding  through  the  Facility  is  requested.  The 
Austrian recovery and resilience plan provides cost estimates for all 32 investments and one 
reform for which funding through the Facility is requested. In accordance with the guidance 
provided to Member States, individual cost estimates have been provided for all relevant cost 
components.  No  cost  estimates  have  been  provided  for  27  reform  measures  entailed  in  the 
plan, for which no funding from the Facility is requested, irrespectively of whether they have 
a budgetary impact or not. Annex III on milestones, targets and costing was duly completed 
and  presented.  For  several  measures,  Annex  I  provides  complementary  information  on 
individual  cost  estimates.  Austria  has  submitted  extensive  supporting  documents  to 
substantiate the cost estimates or the main cost drivers in cases where public information was 
unavailable.  

The  methodology  used  to  derive  cost  estimates  depends  on  the  type  of  investment,  the 
targeted  beneficiaries  and  implementation  status  of  the  project.  Around  25%  of  the 
estimated  cost  consist  of  investment  support  to  private  households  and  businesses  to 
incentivise  environmentally  friendly  mobility  and  living.  This  form  of  support  is  largely 
demand driven and the cost estimates are generally based on experience from previous roll-
outs  of  similar  funding  programmes  or  already  evaluated  applications  for  running 
programmes.  Support  to  the  corporate  sector  constitute  roughly  12%  of  the  total  estimated 
costs  of  the  plan  and  are  aimed  to  step  up  recycling  systems,  the  digitalisation  projects  of 
small  and  medium-sized  companies  and  support  the  planned  IPCEIs.  The  provision  of  cost 

61 

 
 
estimates for the planned IPCEIs is particularly difficult as preparations at European level are 
still at an early stage and priorities and participants are yet to be determined. About 14% of 
the estimated  costs of the plan  are targeted to  human capital  formation  (re- and up-skilling, 
research and learning). Another 12% of the estimated costs are planned for gross fixed capital 
formation  (e.g.  electrification  of  railways,  research)  and  cost  estimates  are  generally  very 
precise and well documented. Overall, the precision of the cost estimates hinges on how far a 
specific  programme  has  been  implemented:  if  the  legal  basis  of  the  funding  and  hence  the 
funding  criteria  (Förderungsrichtlinien)  represent  a  milestone  themselves  and  if  the 
beneficiaries eligible for funding are yet to be defined, only expected values for the costs can 
be determined.  

The  reforms  and  investments  included  in  the  plan  take  into  account  the  eligibility 
provisions  set  out  in  the  Regulation.  Based  on  the  information  provided  in  the  plan,  all 
reforms and investments are implemented after 1 February 2020 and all relevant actions, i.e. 
milestones and targets, as well as payment commitments related to their implementation are 
planned to be realised by 31 August 2026 at the latest. Value-added tax (VAT) is not part of 
the  cost  estimates,  for  which  funding  from  the  RRF  is  requested30.  For  all  investments 
included  in  the  plan,  clear  information  is  provided  about  additional  investments  from  other 
EU funds (see below)31. For measures providing investment support, co-financing from other 
EU  funds  (e.g.  ERDF,  EAFRD)  can  generally  be  excluded  through  the  defined  funding 
criteria and the corresponding selection of the implementing body (Abwicklungsstelle).  

The plan includes two measures with costs of a recurrent nature, which produce longer-
term benefits in line with  the objectives of the Facility and for which financing will be 
sustainably ensured after the duration of the Facility32. The respective measures respond 
to  the  country-specific  recommendations  addressed  to  Austria  in  2019  and  2020  and 
contribute  to  the  Facility’s  overarching  objective  to  promote  social  and  territorial  cohesion 
(pillar  four).  The  measures  are  part  of  component  4  (Just  recovery)  and  aim  to  support 
disadvantaged  groups,  such  as  those  at  risk  of  poverty  and  people  with  health  impairments. 
Overall, the corresponding costs will not lead to a fiscal deterioration after the time horizon of 
the recovery and resilience plan.  

30 A dedicated statement is included for every individual investment: “Value added tax is not part of the costs of 
the  measure  in  question,  for  which  funding  from  the  RRF  is  requested.”  More  specifically,  support  to  the 
corporate sector do not include a VAT refund because of the deduction of input tax (Vorsteuerabzug). In the case 
of  transfers,  the  share  of  the  transfer  in  the  total  cost  is  capped  in  a  way  that  the  financing  of  VAT  can  be 
excluded. 
31 The plan includes one project (1.B.5. Construction and electrification of regional railways (Koralmbahn)), for 
which  Austria  received  funding  through  the  Connecting  Europe  Facility.  However,  based  on  the  supporting 
material provided, double funding can be ruled out. 
32  These  measures  are  4.A.3  (Mother-child  pass)  due  to  necessary  software  updates  and  4.A.4  (Early  aid  for 
disadvantaged pregnant women), for which there is however a political commitment to the sustainable funding in 
the form of a basic resolution by the federal level, the Länder and social insurance agencies in the Federal Target 
Control Commission. 

62 

 
 
                                                           
Reasonable costs 

At  the  level  of  individual  cost  estimates,  reasonability  is  achieved  if  the  calculations 
behind  the  cost  estimate  are  comprehensible  and  based  on  sound  underlying 
assumptions.  The  external  validation  of  a  cost  estimate  by  an  independent  public  body  is 
deemed  to  increase  the  reasonability  but  it  is  not  mandatory.  At  the  level  of  the  plan, 
reasonability of the cost estimates is rated A if estimated costs are reasonable to a high extent 
for a large majority of all reforms and investments, for which financing through the Facility is 
requested. Based on the information provided in Annexes I and III to the plan, it is clear how 
Austria  estimated  the  costs  of  individual  investments.  The  cost  estimates  can  be  readily 
recalculated  and  underlying  assumptions  (e.g.  average  costs  derived  from  the  roll-out  of 
previous  similar  programmes)  are  clearly  identified.  In  the  Austrian  plan,  a  majority  of  the 
individual  cost  estimates  are  assessed  to  be  reasonable  to  a  high  extent.  In  cases  where 
funding criteria and beneficiaries are not yet sufficiently known, expected values for the costs 
are rated to be reasonable to a medium extent.  

Plausible costs 

At the level of individual cost estimates, plausibility is achieved if the cost estimates are 
substantiated by reference costs (e.g. historical data) for the key cost drivers, that are in turn 
supported by clear evidence and in line with comparable reforms or investments. At the level 
of the plan, plausibility  of the  cost  estimates is  rated A if estimated  costs are plausible to  a 
high extent for the majority of reforms and investments representing at least 50% of the total 
cost and if estimated costs are plausible to a high or medium extent for a large majority of all 
reforms and investments. Austria provided reference costs at least for the key cost drivers of 
the majority of investments included in the plan. In most of the cases, the reference costs were 
supported  by  clear  evidence  (e.g.  data  on  unit  costs  from  evaluation  reports  of  previous 
programmes). In the Austrian plan, all individual cost estimates are assessed to be plausible to 
a high or medium extent.  

No double Union financing 

Austria  provided sufficient information and evidence that the amount of the estimated 
total  cost  of  the  plan  to  be  financed  under  the  Facility  is  not  covered  by  existing  or 
planned  Union  financing.  At  the  level  of  individual  cost  estimates,  Austria  provided 
sufficient information as to whether measures or parts thereof are (planned to be) covered by 
other Union financing. In a single case where other Union financing is involved, Austria has 
indicated the relevant instrument and the amounts covered together with a clear description of 
which parts of the measures are covered. Those costs were taken out from the cost calculation.  

Commensurate costs and cost-efficiency 

The  amount  of  the  estimated  total  cost  of  the  plan  is  commensurate  to  the  expected 
national  economic and social impact and is in line with  the principle of cost-efficiency. 
Cost-efficiency  is  established  on  the  basis  of  the  cost  assessment,  the  expected  national 
economic  and  social  impact  as  well  as  the  number  of  country-specific  recommendations 
addressed by the plan.  

63 

 
 
The justification provided by Austria on the amount of the estimated total costs of the 
recovery and resilience plan is to a medium extent reasonable, plausible, in line with the 
principle of cost-efficiency and is commensurate to the expected national economic and 
social impact. Austria provided sufficient information and evidence that the amount of 
the estimated cost of the reforms and investments of the recovery and resilience plan to 
be  financed  under  the  Facility  is  not  covered  by  existing  or  planned  Union  financing. 
This would warrant a rating of B under the assessment criterion 2.9 of Annex V to the RRF 
Regulation. 

4.10 Controls and audit  

Robustness of internal control system and distribution of roles and responsibilities 

The  Austrian  recovery  and  resilience  plan  clearly  identifies  the  roles  of  the  actors 
responsible for  controls.  The  plan  includes  a  list  of  implementing  bodies.  The  Ministry  of 
Finance is  the central  coordinating body, and line Ministries are responsible for supervising 
and  controlling  measures  they  implement  directly  or  through  implementing  agencies.  They 
are subject  to  the control  of their internal  audit units. The central  audit body is  the national 
Court of Audit (Rechnungshof). The Ministry of Finance’s Anti-Fraud-Office33 is responsible 
for  detecting  fictitious  companies,  supported  by  Predictive  Analytics  Competence  Centers. 
The Accounting Agency (Buchhaltungsagentur des Bundes) is responsible for the review of 
bookkeeping. The Financial Police is responsible for the practical recovery and precautionary 
measures.  Each  Ministry  has  an  internal  audit  unit  (Innenrevision),  which  is  tasked  with 
controlling  the  effectiveness  of  controls  and  the  risk  management  system.  Moreover,  these 
units  are  tasked  with  auditing  implementation  processes  regarding  the  prevention  of  serious 
irregularities and double funding for measures implemented by the relevant ministries and the 
implementing agencies under their control. Control plans in each ministry spell out the role, 
mandate and competences of the internal audit units. The Ministry of Finance will provide the 
consolidated  summary  of  audits  with  the  management  declaration,  which  will  be  based  on 
individual  management  declarations  provided  by  the  internal  entities  appointed  for  this 
purpose in the responsible line ministries.  

The  plan  clearly  describes  the  responsibilities  within  the  internal  control  system.  The 
plan describes the legal mandate of the central audit authority and its independence from the 
government.  The  audit  authority  is  responsible  for  auditing  all  national  income  and 
expenditure, including audits of entities acting on behalf of the government. The plan explains 
that the audit authority overall conducts 80-100 audits per year (not specifically for the RRF) 
and  has  conducted  audits  of  internal  control  systems  of  public  bodies  in  recent  years. 
Selection  of  audits  is  based  on  risk,  statistical  methods  and  suggestions  by  citizens.  To 
complement,  the  Federal  Accounting  Agency  (Buchhaltungsagentur  des  Bundes)  is 
responsible  for  the  case-by-case  and  ad  hoc  examination  of  all  accounting,  including 
personnel  calculation,  by  the  budgetary  authorities  and  the  legal  entities  administered  by 
them,  which  can  also  be  carried  out  on  the  spot.  These  checks  verify  that  payments  and 
offsetting  are  carried  out  correctly,  that  supporting  documents  are  properly  available  and 

33  Amt  für  Betrugsbekämpfung  located  at  Ministry  of  Finance,  i.e.  not  the  distinct  Federal  Bureau  of  Anti-
Corruption located at the Ministry of Interior. 

64 

 
 
                                                           
comply  with  the  rules  and  that  valuables  and  other  assets  are  present  and  recorded.  To  this 
end,  the  Accounting  Agency  must  be  given  access  to  all  documents  on  the  spot.  An  audit 
report will be drawn up for each audit, setting out the nature, scope and the main findings of 
the  audit.  If  the  audit  reveals  significant  shortcomings,  the  responsible  authorising  officer 
must take remedial measures. The results of the checks are forwarded to the Court of Audit. 
The  Federal  Ministry  of  Finance  will  ask  the  Accounting  Agency  to  carry  out  appropriate 
sample checks as part of the plan, taking into account the risk assessment.  

The plan describes  the individual  control  mechanisms at the level  of the implementing 
Ministries.  Each  Ministry  has  an  audit  regulation  laying  down  the  activities  relating  to  the 
internal  audit  of  the  administration,  to  verify  compliance  with  relevant  rules.  This  ensures 
monitoring  of  the  effectiveness  of  controls  and  risk  management  systems.  The  various 
elements of the audit setup are described in the corresponding parts of the plan. To fulfil the 
requirements of Article 22 of the RRF Regulation, the internal audit unit within each Ministry 
will conduct audits on the processes with regard to arrangements for the prevention, detection 
and  resolution  of  conflicts  of  interest,  corruption  and  fraud  and  the  avoidance  of  double 
funding for measures implemented both by the Ministry itself and by implementing agencies 
under  its  responsibility.  Implementing  bodies  (i.e.  both  line  ministries  and  implementing 
agencies) will conduct  on-the-spot checks of  correct  implementation  with  beneficiaries with 
sample  sizes  based  on  their  implementation  contracts  with  the  Ministries.  The  audit  reports 
will be submitted to the Federal Ministry of Finance.  

The plan describes the Austrian rules in place to prevent conflict  of interest as well as 
mechanisms to avoid fraud, corruption and double funding. The rules apply to members 
of  the  Court  of  Audit,  member  of  the  Federal  and  Regional  Government,  Members  of 
Parliament,  State  Secretaries,  and  public  officials,  and  to  some  extent  to  their  spouses.  The 
rules include the obligation of the aforementioned groups of persons to report companies or 
businesses  they  own.  Businesses  owned  (in  case  the  ownership  or  stake  is  at  least  25%)  by 
members  of  the  Federal  or  Regional  Governments  or  their  spouses  are  in  certain  cases 
excluded  from  public  contracts.  Public  officials  or  employees  of  implementing  bodies  are 
excluded from participating in tendering, public procurement, and grant processes if they have 
a  direct  or  indirect  financial  or  non-financial  interest  or  another  personal  interest. 
Furthermore,  the  plan  gives  the  legal  basis,  which  mandates  public  bodies  to  exclude 
entrepreneurs  or  businesses  from  these  processes  under  certain  conditions.  There  are  also 
rules  on  the  avoidance  of  conflicts  of  interest  regarding  parallel  gainful  employment.  In 
addition, Austria will use a number of registers (transparency database, database of beneficial 
owners,  list  of  fictitious  businesses)  to  avoid  fraud,  corruption  and  double  funding.  During 
desk  reviews,  Ministries  will  verify  the  absence  of  serious  irregularities.  Moreover, 
implementing  bodies  will  conduct  on-the-spot  checks  to  this  effect.  Further  checks  are 
conducted by the Accounting Agency. 

Adequacy of control systems and other relevant arrangements 

The  plan  describes  mechanisms  to  ensure  the  traceability  of  the  audit  and  control 
system.  The  internal  relationship  between  the  Ministries  and  the  implementing  bodies  is 
formally  established  by  means  of  implementation  contracts.  Record  keeping  of  funding  and 
beneficiaries’ data, and the protection of whistleblowers are all described in the plan. The plan 
explains how data on funding will be stored in the transparency database, where RRF-based 

65 

 
 
funding will have to  be  marked as such. Data on final  beneficiaries  will have to  include  all 
information  required  by  Article  22  of  the  RRF  Regulation.  Moreover,  the  plan  states  the 
obligations  for  implementing  bodies  to  comply  with  the  requirements  on  record  keeping  as 
stipulated by Article 132 of the Financial Regulation. The plan points out the access rights of 
EU  bodies  to  the  data  of  final  beneficiaries.  Subcomponent  3.B  mentions  that  ARACHNE 
will be used to support checks on double funding and for the risk scoring and prevention of 
fraud. 

There are pro-active arrangements in place to prevent and detect serious irregularities. 
Sample-based  on-the-spot  audits  are  conducted  to  detect  irregularities.  For  funding  above  a 
threshold  of  EUR  12 000  beneficiaries  need  to  have  an  independent  confirmation  by  a 
qualified  external  body  of  the  correct  implementation  and  accounting.  The  transparency 
register, the register of beneficial owners and the list of fictitious companies can be used for 
checks.  

The plan sets out arrangements to correct serious irregularities and how funds are going 
to  be  recovered.  The  plan  explains  how  the  administrative  sanctions  in  case  of  fraud, 
corruption  or  conflict  of  interest  and  the  rights  of  OLAF  and  EPPO  with  regard  to 
investigations on serious irregularities are to be applied in accordance with Regulation (EU, 
Euratom)  2018/1046.  The  plan  also  states  that  the  government  will  ensure  that,  in  case  of 
serious irregularities, which result in reduction of support from the RRF, the government will 
take  appropriate  measures  to  prevent  a  financial  loss  to  the  Member  State  and  protect  the 
financial  interests  of  the  Union.  The  plan  also  states  that  ‘Funds  that  are  not  used  for  their 
intended purpose may be recovered. In this respect, there are relevant legal provisions, such as 
the BHG 2013 or the Regulation of the Federal Minister of Finance on General Framework 
Guidelines for the Grant of Funding from Federal Funds (ARR 2014), BGBl II 208/201434. In 
particular,  the  provisions  provide  that  funds  must  be  returned  if  required  by  the  EU 
institutions (cf § 25 (1) (11) ARR 2014). 

Adequacy of arrangements to avoid double EU funding 

The plan explains how funding to businesses or individuals has to be documented in the 
transparency database. To avoid double funding, the transparency database has to be cross-
checked before every funding is approved. Funding from the RRF, as well as past funding that 
was reattributed to the RRF, has to be marked as such in the transparency database. Moreover, 
implementing  bodies  have  to  verify  that  expenditure  was  not  already  funded  by  other  EU 
sources  and  have  to  reject  requests  for  funding  in  case  a  double  funding  would  occur. 
Additionally,  sample-based,  on-the-spot  audits  are  conducted  to  detect  double  funding  or 
other irregularities.  

Legal empowerment and administrative capacity of control function 

The plan gives clear indication on the legal mandate of implementing bodies. The legal 
mandate for the Ministries to implement the measures is given by the Federal Ministries Act 

34 RIS  -  Allgemeine  Rahmenrichtlinien  für die Gewährung  von  Förderungen aus Bundesmitteln  - Bundesrecht 
konsolidiert, Fassung vom 28.05.2021 (bka.gv.at). 

66 

 
 
                                                           
(Bundesministeriengesetz  1986  –  (BMG),  BGBl  76/1986  i.d.g.F.).  Implementing  agencies 
will be mandated by contracts with the Ministries. 

The  plan  provides  assurance  that  the  administrative  capacity  of  Austria’s  audit  and 
control system is sufficient. Since the financial contribution under the RRF only corresponds 
to  0.2%  of  government  expenditures,  Austria  considers  it  most  effective  to  utilise  existing 
structures  that  are  experienced  with  the  management  of  EU  funds  and  to  reorganise 
accordingly if necessary.  

The arrangements proposed by Austria  in the recovery and resilience plan to prevent, 
detect  and  correct  corruption,  fraud  and  conflicts  of  interest  when  using  the  funds 
provided under the Facility, including the arrangements aimed to avoid double funding 
from the Facility and other Union programmes, are assessed to be adequate. This would 
warrant a rating of A under the assessment criterion 2.10 of Annex V to the RRF Regulation.  

4.11 Coherence  

The  reforms  and  investments  included  in  the  Austrian  plan  are  mutually  reinforcing. 
The  investment  and  reform  measures  included  in  the  Austrian  plan  represent  a  coherent 
package.  The  design  of  the  plan  makes  it  clear  that  investment  and  reform  measures  have 
been  chosen  to  contribute  to  the  overarching  aim  of  addressing  long-lasting  structural 
challenges,  challenges  that  have  become  more  acute  during  the  crisis.  Furthermore,  the 
investment  and  reforms  are  embedded  in  a  coherent  framework  to  make  the  Austrian 
economy fit for the future, particularly as regards the green and digital transition, innovation, 
competitiveness, and social cohesion. For the large majority of components, a combination of 
reforms and investments has been chosen, where the reforms provide the framework for the 
investments and the investments support the objectives of the reforms. This is particularly the 
case for the subcomponents related to green (1.A, 1.B, 1.C, 1.D) and digital transition (2.A, 
2.B, 2.C), research and innovation (3.A), health (4.A), and education (3.C). This applies also 
to  the  subcomponents  covering  retraining  and  upskilling  (3.B),  culture  and  art  (4.C),  and 
resilient municipalities (4.B). 

For  several  subcomponents,  the  combination  of  reforms  and  investments  has  been 
chosen  so  that  the  reform  provides  the  appropriate  framework  conditions  or  reduces 
barriers for the investment to be successful. This is for example the case for subcomponent 
1.B  on  environmentally  friendly  mobility,  where  the  reform  measures  included  address  the 
environmental  and  climate  sustainability  of  the  transport  system,  while  the  individual 
investments seek to implement and support the objectives of the reform. It is also the case for 
subcomponent 2.B on digitisation of education, where the provision of digital end devices is 
part of a medium-term national action programme on digitisation in education. This renders 
reforms and investments coherent and mutually supportive. Another example in this regard, is 
subcomponent 2.C on the digitisation of the public administration, where the funding for the 
development of the ‘Once-only’ reform is provided by the Digitalisation Fund investment. It 
also  applies  to  subcomponent  3.A  on  research,  where  the  reform  measure  (the  Research, 
technology and innovation strategy 2030 – RTI Strategy 2030) is providing the framework for 
the investments, which are all aligned with the objectives of the RTI Strategy 2030. Another 
example  is  subcomponent  3.B  on  retraining  and  upskilling,  where  the  reform  ‘Education 
bonus’  should  reduce  barriers  for  the  potential  participants,  to  take  part  in  the  training 
measures,  provided  for  under  the  investments.  Furthermore,  also  subcomponent  4.A  on 

67 

 
 
health, includes reform and investment measures that are mutually reinforcing. The proposed 
measures  are  coherent  and  likely  to  mutually  reinforce  each  other  as  they  aim  to  bring 
improvements across many parts of the health system interacting with each other. Specifically 
for  primary  care,  there  are  one  reform  and  one  investment  measures,  linked  to  each  other, 
with  the  investment  aiming  to  implement  the  objectives  of  the  reform.  This  applies  also  to 
subcomponent 4.B on resilient communities, where the reform of the long-term care system is 
providing the framework conditions for the pilot project on community nurses.  

There is a consistent vision throughout the plan, clearly identifiable from the nature of 
the  reforms  and  investments.  Significant  synergies  can  be  found  between  the  different 
subcomponents related to the green transition (1.A to 1.D, 2.D, 3.D, and 4.B to 4.D). They are 
all clearly embedded in the wider strategy to contribute to the green transition of the Austrian 
economy, they are in line with the objectives of Austria’s NECP and contribute to meeting the 
EU’s energy and climate targets for 2030 and to achieving the EU target of carbon neutrality 
by 2050. The measures included in the area of digitalisation (subcomponents 2.A to 2.D) are 
chosen  in  a  way  to  address  the  various  challenges  Austria  faces  related  to  digitalisation, 
notably  high-speed  connectivity  in  all  areas,  the  digitisation  of  SMEs,  the  provision  of 
appropriate  digital  devices  in  schools  and  the  further  digitalisation  of  the  public 
administration,  for  the  benefit  of  businesses  and  citizens.  The  measures  addressing  social 
cohesion and inclusion are chosen in a way to address different challenges over the whole life. 
They  span  from  early  aid  for  pregnant  women  in  difficult  social  situations  (4.A),  to  the 
provision of additional early childhood education and care places (3.C) and  of a package of 
hours  to  catch  up  with  the  deficits  accumulated  during  the  COVID-19  pandemic  (3.C),  to 
primary health care centres (4.A) and a pilot project for community nurses (4.B), which will 
provide  easy  access  to  health  and  long-term  care  services,  to  improving  pension  rights, 
notably for women with low income (4.D). Also in the area of research and innovation there 
are  important  synergies,  notably  between  the  reform  and  investment  measures  included  in 
subcomponent 3.A and the planned IPCEIs included in 3.D.  

Some of the additional reform measures ensure that investment measures are embedded 
in a wider context. While the different components are in itself coherent packages of reforms 
and  investments,  there  are  also  complementary  effects  between  the  components  and 
particularly  between  the  additional  reforms  presented  in  subcomponent  4.D  and  the  other 
components.  The  investment  measures  intended  to  support  the  green  transition,  are 
accompanied,  besides  the  reforms  already  included  in  the  component  itself,  by  important 
reform  measures,  like  the  eco-social  tax  reform  and  the  proposal  for  climate  protection 
legislation  and  governance,  included  in  subcomponent  4.D,  which  provide  a  bigger 
framework to support the general economy in the green transition. The proposal for a one-stop 
shop targeted at the long-term unemployed is complementary to the education bonus and the 
retraining and upskilling investment measures in component 3.B. The investments included in 
the area of digital and green transition, are supported by reform measures intended to improve 
the  general  business  environment,  enhancing  the  framework  conditions  for  start-ups  and 
liberalising some elements of the commercial framework law.  

The  plan  does  not  present  inconsistencies  or  contradictions  between  and  within  the 
different  components.  Due  care  was  given  to  ensure  that  implementation  timelines  and 
reforms and investments were aligned to ensure successful delivery of the measures. No cases 

68 

 
 
have  been  observed  of  areas  where  the  measures  proposed,  be  it  reforms  or  investments, 
contradict or undermine each other’s effectiveness. 

In  view  of  the  challenges  to  be  addressed,  the  Austrian  recovery  and  resilience  plan 
presents a balanced approach between reforms and investments. As noted in Section 4.2, 
the  plan  aims  to  address  a  significant  subset  of  the  challenges  identified  in  the  country-
specific  recommendations,  making  the  proposed  combination  of  reforms  and  investments 
appropriate.  In  order  to  promote  wider  coherence  across  instruments,  notably  with  the 
European cohesion policy funds, a balanced territorial allocation of resources is encouraged. 

Taking into consideration the qualitative assessment of all the components of Austria’s 
recovery  and  resilience  plan,  their  individual  weight  (importance,  relevance,  financial 
allocation) and their interactions, the plan contains measures for the implementation of 
reforms and public investments which, to a high extent, represent coherent actions. This 
would  warrant  a  rating  of  A  under  the  assessment  criterion  2.11  of  Annex  V  to  the  RRF 
Regulation.  

69 

 
 
 
 
ANNEX: Climate tracking and digital tagging 

Measure/ 
Sub-
Measure 
ID 

1.A.2a 

1.A.2b 

1.A.2c 

1.A.3 

1.B.3 

1.B.4 

1.B.5a  

1.B.5b 

1.C.2 

1.C.3 

1.C.4 

1.C.5 

1.D.2 

2.A.2a 

2.A.2b 

2.A.2c 

Measure/Sub-Measure Name 

Budget 
(EUR m) 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

Climate

35

Digital 

Exchange of oil and gas heating systems - 
biomass 
Exchange of oil and gas heating systems - 
district heating 
Exchange of oil and gas heating systems - 
other renewable energy 
Combating energy poverty 

Zero-emission buses 

Zero-emission utility vehicles 
Construction of new railway lines and 
electrification of regional railways — 
newly or upgraded TEN-T core network. 
Construction of new railway lines and 
electrification of regional railways — 
other newly or upgraded built railways 
Biodiversity fund 
Investments in reverse vending systems 
and measures to increase the reuse quota 
of beverage containers 
Retrofitting of existing and construction of 
new sorting facilities 
Promotion of the repairing of electrical 
and electronic equipment (repair bonus) 
Transforming industry towards climate 
neutrality 
Widespread availability of Gigabit capable 
access networks and creation of new 
symmetric Gigabit connections – 
administrative processing 
Widespread availability of Gigabit capable 
access networks and creation of new 
symmetric Gigabit connections – 
accompanying measures 
Widespread availability of Gigabit capable 
access networks and creation of new 
symmetric Gigabit connections – 
broadband 

53 

53 

53 

50 

256 

50 

030bis 

100% 

034bis0 

100% 

032 

100% 

025bis 

074 
n/a36 

100% 

100% 

100% 

536.6 

064 

100% 

6 

50 

066bis 

100% 

050 

40% 

110 

042 

40% 

042 

042 

40% 

40% 

024ter 

100% 

60 

130 

100 

17.1 

17.1 

857 

053 

100% 

053 

100% 

053 

100% 

35  While  the  total  cost  of  Austria’s  recovery  and  resilience  plan  exceeds  the  total  allocation  of  non-repayable 
financial support to Austria, Austria will ensure that all spending related to the measures mentioned in this table 
as contributing to climate objectives are fully financed by the funds from the Recovery and Resilience Facility. 
36 The ‘Methodology for climate tracking’ annexed to the Recovery and Resilience Facility Regulation does not 
set out intervention fields that would allow for climate or environmental tracking of electric vehicles or plug-in 
hybrid vehicles, except for vehicles for urban transport falling under intervention field 074. According to Article 
18(4)(e) of the Regulation, the methodology should however ‘be used accordingly for measures that cannot be 
directly  assigned  to  an  intervention  field  listed  in  Annex  VI’.  In  this  context,  the  Commission  has  applied  a 
100% climate contribution coefficient for zero-emission vehicles of all categories (this includes battery electric 
and fuel cell/hydrogen-powered vehicles). 

70 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
Measure/Sub-Measure Name 

Budget 
(EUR m) 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

Climate

35

Digital 

Measure/ 
Sub-
Measure 
ID 

2.B.2 

2.C.2 

2.D.1 

2.D.2 

2.D.3a 

2.D.3b 

2.D.3c 

2.D.3d 

2.D.3e 

2.D.3f  

3.A.2 

3.A.3 

3.A.4 

3.B.2a 

3.B.2b 

3.B.2d 

3.D.1 

3.D.2 

4.A.3 

4.B.3a 

4.B.3b 

4.B.3c 

4.B.3d 

4.C.3 

4.C.4 

4.C.5 

Provision of digital end-user devices to 
pupils 
Digitalisation fund public administration 

Digitalisation of SMEs 

Digital investments in enterprises 
Green investments in enterprises - 
Thermal renovation of buildings   
Green investments in enterprises - grid-
coupled photovoltaic installations and 
electricity storage  
Green investments in enterprises - energy 
saving in companies   
Green investments in enterprises - zero-
emission mobility — sub measure 
Green investments in enterprises - other 
alternative fossil free drives 

Green investments in enterprises – 
investment in electronic charging station 

Quantum Austria — Promotion of 
Quantum Sciences 
Austrian Institute of Precision Medicine-
Digital Share   
(Digital) Research Infrastructures 
Promoting reskilling and upskilling -  
basic qualification  
Promoting reskilling and upskilling - 
IT/care/environment 
Promoting reskilling and upskilling - 
youth coaching 
IPCEI Microelectronics and Connectivity 

IPCEI Hydrogen 
Development of the electronic mother 
child pass platform including the 
interfaces to the early aid networks 
Investment in climate-friendly town 
centres - building refurbishment of 
companies 
Investment in climate-friendly town 
centres- connection to high-efficiency 
district heating 
Investment in climate-friendly town 
centres –- green façades projects  
Investment in climate-friendly town 
centres - brownfield land projects 
Renovation of Volkskundemuseum Wien 
and Prater Ateliers – energy efficiency 
measures 
Digitalisation wave cultural heritage 
Investment fund for climate-friendly 
cultural businesses 

71 

012 

011 

010 

010 

100% 

100% 

100% 

100% 

171.7 

160 

32 

69 

20 

024bis 

100% 

153 

024bis 

100% 

32.5 

029 

100% 

294 

072bis 

100% 

4 

072bis 

100% 

0.5 

077 

100% 

107 

13.7 

30 

81.25 

112.5 

19.8 

125 

125 

10 

021quater 

100% 

009bis 

100% 

021quater 

100% 

108 

108 

099 

100% 

100% 

40% 

009bis 

100% 

095 

100% 

055bis 

022 

40% 

100% 

17.5 

024ter 

100% 

17.5 

030bis 

100% 

5 

10 

037 

100% 

046bis 

40% 

13.9 

026 

40% 

16.5 

15 

024 

40% 

021bis 

100% 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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