The economic damage caused by corruption in this country could have amounted to more than 15 billion euros in 2021. This was the result of calculations by Friedrich Schneider, professor at the Johannes Keppler University in Linz. The damage also increases almost every year. To counter this, political measures such as better protection for whistleblowers and stricter penalties are needed, according to Schneider.
According to Schneider, corruption has a number of major consequences that negatively affect an economy. If the best bidder is not given the opportunity to bid, the state loses tax revenue or spends an unnecessary amount of public money. On the other hand, productivity is reduced by eliminating companies that are denied a chance in public (or private) contracts due to bribery activities by their competitors. Corruption also degrades the quality of state institutions, Schneider told APA.
So much has escaped Austria’s gross domestic product in recent years:
- 2016: 12.0 billion euros
- 2017: 12.8 billion euros
- 2018: 11.9 billion euros
- 2019: 13.5 billion euros
- 2020: 14.4 billion euros
- 2021: 15.2 billion euros
Switzerland as a role model
That corruption can be completely eradicated is probably a utopia. However, if it were possible to keep them at the Swiss level, the damage to the Austrian economy would be 6.2 billion euros less, according to Schneider’s calculations.
In Germany, the economic damage amounted to 221.2 billion euros in 2020 and 234.1 billion euros in 2021, according to Schneider. For the 27 EU countries as a whole, he calculates a damage of 938 billion euros in 2020 and 1011.5 billion euros in 2021.
Austria ranks 13th in the corruption ranking
Accurately measuring corruption in a country is, of course, difficult because you have to rely on surveys, Schneider admitted. Transparency International’s data is most commonly used here, in whose latest ranking (2021) Austria ranked 13th out of 180 countries listed.
Concrete measures are needed to combat corruption. Schneider calls for more transparent procurement by introducing a register of public tenders, a ban on public procurement for three to five years for convicted companies involved in corruption, better protection for whistleblowers, a disclosure obligation for subsidies of more than 10,000 euros, stricter penalties for corrupt Loss of people and office, a years-long ban on running for political office, and the increase in the human resources of the judiciary.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
