Figure of the month: 2026

Even in the hard-hit industrial sector, things are gradually picking up again. The fact that inflation dropped more significantly than projected at the start of the year gives companies and households justified reason for renewed confidence.

At the same time, however, the domestic and foreign policy demonstrations of power by the Trump administration have drastically highlighted how deeply the rule of law and global security—lifelines of the internationally integrated economy—have been upheaved. Consequently, our economic recovery is built on shaky ground. Europe must finally do its homework to achieve strategic independence and economic resilience. It can simply no longer afford the luxury of long-standing structural inadequacies through which it wastes its still-considerable resources and talents. 2026 must therefore be a year of courageous reforms—Austria included.

What we can concretely tackle at the national level this year: First, pass a biennial budget that noticeably cuts growth-stifling expenditures, even in the face of resistance. Second, rapidly breathe life into the industrial strategy. Policymakers must provide sufficient funds to promote future technologies critical to competitiveness—not only for basic research but also for their broad application within companies. And third, within the “Reform Partnership”, cut the Gordian knots of the federal system to achieve efficient, goal-oriented management and financing of healthcare, education, and energy supply.

Holger Bonin
IHS Director

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