(Vienna) The Vienna Stock Exchange fears that a new capital gains tax will worsen the position of the Austrian capital market and perceives a political contradiction in this move. After all, it was a concerted political effort that helped to make investments in stocks more popular in Austria – think of the state-subsidized retirement products and the privatizations through the stock exchange. A new capital gains tax would threaten the appeal of stock investments and thus undermine the political efforts to date and the activities of all capital market participants. Austria still has an enormous potential for savings in stocks: Only 17% of the total assets in Austria are invested in shares and investment certificates, while the European average is almost twice as high at 32%
Furthermore, the Vienna Stock Exchange pointed out the positive effects on the economy of a functioning capital market that should not be ignored when discussing this issue. Thus, a study conducted by the Institute for Advanced Studies (Institut für Höhere Studien) in 2006 revealed a positive relationship between the performance of Wiener Börse and growth and employment in Austria. According to the study, the fourfold increase in trading volume in the years 2003 to 2005 contributed 0.3% to gross domestic product and created 5,900 jobs during this period.