Services of general interest in Vienna: Prosperity and quality of life for the entire region
A study by the Vienna Institute for International Economic Studies (wiiw) examines services of general interest in various European cities. The renowned institute compares how public services of general interest affect social and economic life. Austria and Vienna come out on top. Why is that? In Austria and the city of Vienna in particular, affordable housing through public housing, low-cost water, a reliable waste disposal and inexpensive public transport ensure a comparatively low cost of living above all. This means that more money is available for culture and consumption. This in turn strengthens the business location and leads to greater prosperity. Ultimately, this means that public investments into services of general interest lead to a high quality of life for the Viennese.
However, it is not just Vienna’s inhabitants benefitting from public services, but the whole of Vienna’s metropolitan area.
PROSPERITY THROUGH PUBLIC HOUSING AND INVESTMENTS INTO INFRASTRUCTURE
More and more cities envy Vienna for its social housing. While rents are literally exploding all over Europe, Viennese municipal and cooperative housing is keeping prices relatively low, so that the Viennese do not have to spend all their money on housing. Relatively low costs for water, waste disposal and many other housing-related services also play an important role. Public transport covers the entire city area including the surrounding countryside and is inexpensive compared to cities with similar levels of prosperity. All of this is guaranteed by services of general interest. This leaves the Viennese with more money for consumption and cultural activities. This is also reflected in surveys: in no other European city are people as satisfied with the cultural offerings and quality of life as in Vienna.
PUBLIC SERVICES SAVE LIVES
Austria and Vienna in particular have often been criticized for the high number of hospital and intensive care beds. These prophecies of doom were silenced in the first year of the coronavirus pandemic. Despite the high number of infections and corresponding hospitalizations, Vienna's hospitals never overloaded its capacities. Public services therefore not only ensure quality of life: they actually save lives!
Another key factor for quality of life is the compatibility of work and family life. The current survey shows that childcare is available everywhere in Vienna practically all year round. On average, childcare facilities in Vienna are closed just 7 days a year. This gets even more impressive in comparison with the other Austrian federal states: in most cases, kindergartens and toddler groups are closed as long as 21 days per year. Above all, childcare in Vienna is free of charge. This is a great relief for young families and working mothers.
ATTRACTIVE TO LIVE AND WORK
Vienna is a good place to live and work - this is also the conclusion reached by the authors of the comparative study mentioned above. And it's not just the Viennese, who benefit from this. High-quality jobs and public services in the areas of education, health and transport also benefit people in the entire metropolitan area.
From an economic policy perspective alone, it is therefore important to maintain and expand the high quality of life in Vienna. According to the study’s findings, public housing in particular has to be expanded to make sure that Vienna stays as liveable as she is today.
PUBLIC HOUSING AND PUBLIC TRANSPORT BENEFIT THE ENTIRE METROPOLITAN AREA
Because in relation to other major European cities, people in Vienna do not have to spend so much on housing, more money is left to spend on "nice and pleasant things in life”. Money that is not spent on housing therefore flows largely into other sectors of the economy,
Doch nicht nur das: Geringe Wohnkosten in Wien sorgen auch dafür, dass die Preise fürs Wohnen im Umland stabil bleiben. Ein Effekt, der durch Investitionen in den Öffentlichen Verkehr noch verstärkt wird. Je mehr Öffis den Ballungsraum Wien verbinden und verschmelzen lassen, desto besser. Auch das zeigt die Studie klar. Kurz: Von Öffentlicher Daseinsvorsorge in Wien, profitiert die gesamte Region!
But that's not all: relatively low housing costs in Vienna also ensure that housing prices in the surrounding area remain stable. An effect that is reinforced by investments in public transport. The better and more reliable public transport connects and merges Vienna with the surrounding areas of Vienna’s metropolitan areas’, the better. The study also clearly shows that the entire metropolitan area benefits from the high quality services of general interest in Vienna!
A brief English summary of the study can be found here: