Franz Gasselsberger: When we entered the German market in 1990, we had to set up a wholly owned subsidiary and it involved a lot of bureaucracy and costs. Then we joined the EU. We were then able to open branches abroad very easily and that accelerated our expansion enormously.
Why is the population so critical of the EU?
The advantages of the EU are communicated and made known to the population far too little. Our representatives should really be more active in providing positive information and standing up to the EU critics. And they are not doing that, they are leaving the field to them. There is no positive counterbalance. Without the EU, we would not have many advantages.
What are your expectations for the European elections?
I believe that the sustainability and transformation train will continue. However, populist and nationalist currents will become stronger. The particular interests have not yet been overcome, as can be seen in the example of France and Germany. And yet we need a major breakthrough right now. The countries do not send the best people to Brussels and always blame problems on Brussels. These rituals are bad for the common cause.
And what about the often mentioned bureaucracy?
The bureaucracy is overwhelming. There is a pressure to regulate everything and people feel patronized. And then they are open to seemingly simple solutions. On the subject of sustainability, for example. From next year, we will have an obligation for companies of a certain size to publish sustainability reports. And we see that medium-sized companies in particular are not dealing with the issue at all. The issue is relatively low on their list of priorities. The companies do share responsibility. But the guidelines are complex and detailed, so companies are struggling with them.
Companies may have other concerns at the moment…
Yes, but you have to make them aware that they will be at a competitive disadvantage and that they cannot avoid the issue. They have to provide enough resources. There is no way around the issue.
Upper Austria is considered an industrial state. However, many companies are not doing well at the moment. Why?
Austria and Germany in particular, but also the Netherlands, have suffered losses in productivity. Austria ranks 20th in terms of competitiveness, Switzerland in second place. In Austria, unit labor costs have risen by a third since 2019. The southern European countries have caught up enormously since the financial crisis. In terms of productivity, Europe has grown together at the expense of the Germans and Austrians. We have lost enormously.
Why?
We lack major reforms. Those for the labor and capital markets have failed, and the time has never been right for pension reform. In recent years, people have developed a sense of entitlement that the state supports them for everything. In Switzerland, only 6 percent of GDP is spent on anti-inflation measures, compared to 18 percent in Austria. In Austria, there is a bonus for everything, for tradesmen, energy costs, etc. Austrians are showered with bonuses and yet are more dissatisfied than almost anywhere else.
What would be your approach?
Why don’t we implement a tax reform that actually deserves the name?! One that aims to get people to work more and longer, to give tax breaks for overtime and to leave more net income from gross income. Why is this failing?! A lot of taxes are collected, then bureaucracy is brought in to hand out bonuses indiscriminately. Even I get a tradesman’s bonus. Why do I need that? Reversing the trend here would be the order of the day. Why do the Swiss vote against a sixth week of vacation or against an increase in the anti-inflation package? Why have the Austrians become so different, have they been brought up that way?
How likely is it that the next federal government will implement major tax reform?
I believe that this will not happen, or only to a very limited extent. Because the economy only plays a minor role in the election campaign. Illegal migration is the big issue. Of course I am against illegal migration, but that is not THE issue.
Which one then?
We will have intensive discussions about wealth and inheritance taxes. And then we will be told that it was not raised to the level that the other party would have demanded. We have enough taxes. We are one of the most heavily taxed countries in Europe. But certain institutions are spreading myths that these taxes bring in 22 billion. But France, with 14 times Austria’s GDP, only brought in 4 billion. Things are being claimed here that cannot be implemented in reality.
Keyword inflation: Next week the first cut in key interest rates will probably come. If you were to give ECB President Lagarde a grade for her performance over the last few years, what would it be?
In the first half, a 5 because they ignored the issue of inflation for too long, did not use the instrument of interest rate policy in time and only woke up when inflation reached 8 percent. But after that, they get a very good grade from me because they then pulled the lever and did it more consistently than I could have imagined in my wildest dreams. That brought inflation back down to a good level.
Speaking of pensions: the typical Austrian retires at 65 at the latest. Why not you?
It annoys me when I have to justify, as a 65-year-old, that I still enjoy and have passion for my work. I feel sorry for all the people who start to long for retirement in their 50s. What do they think happens at this stage of life?!
What is your personal approach to aging?
As you get older, you have to look for energy sources in time. In addition to your professional activities, you need things that give you joy. I’m now expecting my sixth grandchild, and I’m an enthusiastic runner and mountaineer. I plan to climb Mont Blanc and am going to go around the Matterhorn this year. And I’m a hunter. And in all of this, I meet other people who distract me from my worries and problems and give me new strength again and again.
Was being a banker always your first career choice?
Not at all. My parents were farmers and it really hurt me at first that I didn’t become a farmer too. I actually wanted to be a forester too. But my mother talked me out of it. Without her help, I wouldn’t have graduated or gone to university.
You have spent more than half your life at Oberbank, including many years on the board. What would your life be without Oberbank?
Oberbank has always been a determining factor in my life, but it was a coincidence that I ended up at this institution. First, I was rejected by two regional banks around 40 years ago. Then I was able to start at Oberbank. When I looked at my pay slip with dissatisfaction, the then HR manager said to me, “What do you want? You can be anything, even a board member!” Then it quickly became clear that this job suited me. At the age of 25, I became the youngest branch manager at the time.
What is the secret of their success?
You have to be a communicative person, be able to relate to people and show leadership. An incredibly strong identification with the company developed and one thing always led to another. You also always need luck and the right mentors. I can’t look back yet, but the four decades have flown by. They have shaped me and perhaps I have also shaped Oberbank a little.