Perhaps the time is ripe for Israelis to set their sights on Austria. Waiting for them in Tel Aviv's Azrieli Towers is Adv. Julia Andras, a young lawyer who is the Austrian Israeli Chamber of Commerce country manager Israel. Andras, who worked in Vienna in Lansky, Ganzger & Partner Rechtsanwälte GmbH law office was appointed by Austrian Israeli Chamber of Commerce chairman Adv. Gabriel Lansky to head the Tel Aviv office.
The Austrian Israeli Chamber of Commerce was founded 60 years ago, but for much of the time operations in Israel had been managed long distance from Austria. But a recent meeting between Lansky and Adv. Gadi Bluszstein of Tel Aviv-based law firm Bluszstein, Bar Kahan, Zigenlaub & Co. led Bluszstein to decide to offer himself as host of the Israeli representative office.
Andras, 29, an Austrian-born Jew and daughter of Holocaust survivors, immigrated to Israel a year ago. She said, "Many Israelis are surprised when they hear that I made aliyah. "It's as if they do not understand why somebody would choose to live here. I immigrated to Israel because I am a Jew and a Zionist and Israel is my ideological home. I wanted to instill more significance into my life and live in a country that I care about and would be prepared to die for."
She added, "Because I am a very organized person I planned my move to Israel very carefully. I came here first to rent an apartment, fixed myself up with a job when I was still in Austria, and sent a lift with all my possessions."
When asked to talk about the difficulties in moving from Austria to Israel she again surprises with her optimism. She said, "Aside from the fact that I don't speak perfect Hebrew, and the absence of my family and close friends, I haven't had a single difficult day since I moved to Israel. I've been amazed by all the warmth and assistance I've been given since immigrating. I've never been made to feel like a foreigner. I've already been here in Israel for a year and my stay here has proved one thing: that I love the country."
She continued, "For sure there are a million differences between the Austrian and Israeli mentalities. From my point of view - and that's what I really love about life here - Israelis are very straightforward. They either like you or they don't. There is no confusion. In comparison with Austria or Eastern Europe, you can describe Israelis as open, warm, and laid-back but sometimes rude, noisy and tactless in their behavior."
"One thing springs to mind. I know that if something happened to me in the street, Israelis would rush to help me without thinking twice. Austrians, on the other hand, are very formal, tough and cold. It takes them a while to loosen up. So in a strange way, I don't think it is difficult to get used to the Israeli mentality. I'd like to think that I am a well balanced blend of the two - Austrian and Israeli.
Economic Cooperation
The role of the Chamber of Commerce is to promote economic cooperation, and Andras feels that there is much work to be done. She says that the volume of trade between the two countries in negligible. In 2008, trade amounted to €200 million. Bluszstein and Andras believe that this is only the beginning and that both sides are missing out.
Andras said, "Over the years Austria has not realized the potential of Israeli industry, partly because relations between the two countries have not been especially warm. Recently more and more Austrian companies are showing interest in Israel and there is a rising trend of bidding in tenders and interest in Israeli technology."
In what areas does Israel have something to offer Austria?
"Austrians are very strong in traditional heavy industries such as metal, steel, paper, textiles - classic low-tech including companies manufacturing mechanical parts for widely used machinery. In Israel they are very interested in high-tech companies."
The chamber of commerce is an NGO operating with the approval of the Israeli and Austrian governments but involving an uneven number of companies in both countries. Andras says that 80 Austrian companies have paid up membership fees with the chamber compared with only seven on the Israeli side.
Andras explained, "The reason is mainly the difference in mentality. In Austria it is acceptable for a private company to be a member of an NGO and pay membership fees. In Israel people are not used to paying for something without getting something back for it. We are working with far more than seven companies here, but who prefer to work with us and pay according to success."
It seems as if the small amount of business activity between the two countries stems from a lack of knowing each other. It is as if each country is in a blind spot for the other. The efforts of the chamber are directed towards increasing exposure of the existing business potential in each of the countries. One fascinating initiative is a project being planned for the summer by the chamber in collaboration with the Israeli embassy in Vienna involves setting up a Tel Aviv style beach on the banks of the Danube. Alongside this tourist attraction will be a science fare for Israeli companies.
Does tourism also have potential?
Andras said, "Austria is a quiet place where not very much happens. Austrians hear a lot in the media about what is happening here, and what is going on in Gaza, and feel that it is dangerous here and that people are being shot in the street. We invited a group of Austrian journalists to come for a week-long visit and they discovered a different Israel and wrote about it. There were major articles in all the largest newspapers."
Andras observed that most of Austria's largest banks have branches in the former Communist bloc where they finance many projects and she hastens to add that Austria's biggest banks were virtually unharmed by the global financial crisis because they are very conservative.
Bluszstein is eager to commend the Austrian stock market even in the current global crisis. He said, "Government companies in Austria, for example the Austrian Railway company, are issuing government bonds backed up by law. This type of thing is suitable for the Israeli market because there are almost no euro denominatied financial instruments here."
Bluszstein points out that pension funds and provident funds in Israel are being intensively encouraged by the government to diversify part of their portfolios into euro financial instruments. He said, "They are being forced to put more than 70% of their assets in government bonds, while part of the portfolio must be in foreign currencies, that is to say, dollars and euros."
He added, "The Austrian government bond is issued in euros. This instrument is without risk in so far as that is possible in Israeli terms and it has a place in the Israeli market. It has a high government guarantee rating and the Austrian government itself has a high rating. It is what is known in the provident funds professional jargon as a 'basic asset," that you don't buy and sell every day. You hang on to it and know it will yield about 4%."
And the funds don't know about this?
He said, "They didn't know they existed. They didn't have a clue."
Published by Globes [online], Israel business news - www.globes-online.com - on April 19, 2009
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