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Stripping in Austria: When lobbying becomes a risk for the location

An Austrian court examines whether the industrialist Siegfried Wolf bent tax rules by lobbying. The case shows how close influence and unauthorized advantage lie together.

Stripping in Austria: When lobbying becomes a risk for the location

How much lobbying can a democracy take? This is being tried in an Austrian court. It touches on issues that are central to companies, investors and locations. A country where tax decisions are considered negotiable is difficult to calculate for serious investors. Legal certainty is a location factor, it also consists of the certainty that administrative decisions are made according to the same rules for everyone. For companies, the case has twofold effects. On the one hand, it shows that the judiciary also investigates prominent business representatives. On the other hand, it raises the question of how far targeted influence measures can go. Compatibility of mandates The question of good conduct also affects supervisory boards. Anyone who sits on several supervisory bodies is responsible for complying with the rules of the companies in which he works. The process could re-ignite debate on the compatibility of such mandates with private interests. Finally, the case has an international dimension. References to Russia and the Nord Stream 2 project link the process to one of the most politically sensitive economic projects of recent years. Even if, according to the prosecution, it is a consultant contract that does not have to play an immediate role in the tax issue, the connection shows how closely economic and political spheres were interwoven in Europe. Prominent business representatives usually have contacts in politics and administration. This is part of the reality of large companies. It becomes problematic when contacts are translated into concrete decisions that do not fall into the sphere of corporate interest representation, but into that of a state administrative procedure. Lobbying is allowed in a democracy and often makes sense, provided it remains transparent and adheres to the rules. The border is crossed if the access does not serve the purpose, but gives a specific person an advantage that he or she does not rightly deserve. Whether this was the case with the industrialist Siegfried Wolf, will be prosecuted. But the case shows how close together legitimate networking and problematic influence can be.

Source: FAZ ›

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