Johannes "Hannes" Androsch (born 18 April 1938) is an Austrian entrepreneur and consultant; a former Social Democrat top politician who served as an Austrian

Finance Minister A finance minister is an executive or cabinet position in charge of one or more of government finances, economic policy and financial regulation. A finance minister's portfolio has a large variety of names around the world, such as "treasury", ...

from 1970 to 1981 and additionally as vice chancellor from 1976 to 1981; and a former banker who from 1981 to 1988 was the general director of the Creditanstalt-Bankverein (Austria’s leading bank at that time) and subsequently an advisor to the World Bank. From 1989 onward he built an industrial investment group, Androsch International Consulting (AIC), which is a major factor in Austria's internationally active corporate landscape. In addition, Androsch's foundation is an important sponsor of research and development activities in Austria, where he is regularly consulted on matters of political, economic and financial importance.

Youth and early political activities

Androsch was born on 18 April 1938 in Vienna, where his parents, Hans and Lia, were tax advisors in the district

Floridsdorf Floridsdorf (; Central Bavarian: ''Fluridsduaf'') is the 21st district of Vienna (german: 21. Bezirk, Floridsdorf), located in the northern part of the city and comprising seven formerly independent communities: Floridsdorf, Donaufeld, Greater Je ...

. The family lived through the end of World War II in Southern Bohemia, where they witnessed the expulsion of Germans from Czechoslovakia in June 1945. His mother placed seven-year-old Hannes on the window sill and instructed him to watch the events closely so that he would never forget. Androsch concluded his high school education in Vienna in 1956. He proceeded to study business administration at the University of World Trade (today's

Vienna University of Economics and Business The Vienna University of Economics and Business (german: Wirtschaftsuniversität Wien, WU) is a public research university in Vienna, Austria, the largest university focusing on business, management and economics in Europe. It has been ranked a ...

), where he obtained his diploma in 1959, followed by a doctorate in 1969. His political activities manifested early, and took him to the top position in the Vienna branch of the student organization of the

Socialist party Socialist Party is the name of many different political parties around the world. All of these parties claim to uphold some form of socialism, though they may have very different interpretations of what "socialism" means. Statistically, most of t ...

(1960–1961), and then to leadership of the national organization (1962–1963). Thereafter, at the age of only 25 years, he became secretary for economic issues in the club of the Socialist members of parliament, a position which he held until 1966.

Rise and fall as a politician

1967 was a fateful year for Androsch: he was certified as a public accountant and tax advisor, allowing him to participate in the financial consulting enterprise which his parents had significantly expanded; and he became a member of parliament for the Socialist party where he earned himself a reputation as a shooting star. When

Bruno Kreisky Bruno Kreisky (; 22 January 1911 – 29 July 1990) was an Austrian social democratic politician who served as Foreign Minister from 1959 to 1966 and as Chancellor from 1970 to 1983. Aged 72 at the end of his chancellorship, he was the oldes ...

turned the tables on Austria's political scenery with the 1970 national election he made the 32-year-old Androsch

in his first minority cabinet on 21 April 1970. Androsch continued in this function when the Socialist single-party government consolidated its dominance through the absolute majorities won in the elections of 1971 and 1975. Although he had not been Kreisky's first choice for this position (Schachner-Blazizek and Felix Slavik had declined) the two men developed a working relationship that was, initially, very good. Androsch became a strong advocate of

Keynesian economics Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomic theories and models of how aggregate demand (total spending in the economy) strongly influences economic output a ...

, in a modification that became known as “Austro-Keynesianism.” On 1 October 1976 Androsch was made

Vice-Chancellor of Austria The vice-chancellor of Austria is a member of the Government of Austria and is the deputy to the Chancellor. It is functionally equivalent to a deputy prime minister in other countries with parliamentary systems. Description of the office Art. 6 ...

while remaining minister of finance. In this capacity he became chairman of the

OECD The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...

at ministerial level in 1979, and also served as chairman of the Interim Committee of the

International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster glo ...

. While Androsch had built an excellent political network within the centrist wing of the Socialist party and especially the Austrian Trade Union Federation (ÖGB), not everybody was happy with his rapid rise. The fact that the Austrian print media, who for the most part venerated Kreisky and had adorned him with the nickname "Sun King," started to refer to Androsch as the "Crown Prince" did not help. When in 1975 Androsch differed with Kreisky on how to handle the reconfiguration of Austria's state-owned industry, and expressed his wish to become president of the national bank instead of continuing in the government, Kreisky himself became suspicious of the young man he had mentored for years. He started to take exception to a highly problematic incompatibility that had been public knowledge since Androsch became a member of the government: he still owned the tax advisor company (renamed Consultatio in 1970) which he had taken over from his parents, although he had placed it in

escrow An escrow is a contractual arrangement in which a third party (the stakeholder or escrow agent) receives and disburses money or property for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacti ...

when he became a finance minister. Towards the end of 1980, after long and intense campaigns by Austria's media and a continued deterioration of his relationship with Kreisky, Androsch resigned from his political positions on 20 January 1981.

Second career as a banker

The government appointed Androsch as the governor of the state-owned

Creditanstalt The Creditanstalt (sometimes Credit-Anstalt, abbreviated as CA), full original name k. k. priv. Österreichische Credit-Anstalt für Handel und Gewerbe (), was a major Austrian bank, founded in 1855 in Vienna. From its founding until 1931, th ...

, Austria’s leading bank at that time, a little later in 1981. However, he continued to face heavy opposition and revelations made by investigative journalists (especially

Alfred Worm Alfred Worm (14 June 1945 – 4 February 2007) was an Austrian journalist, author and university professor. Career Worm was born in Gmünd, Lower Austria, and began his professional studies at HTL Mödling, an engineering school in Austria. H ...

), that culminated in a series of investigations of his personal financial conduct, which in part predated his public role or were not demonstrably connected with it. Androsch has repeatedly stated (and has repeated these allegations in a series of interviews published by the Austrian newspaper "Die Presse" in February and March 2010; see sources) that his Socialist successors in the finance ministry, Herbert Salcher and

Franz Vranitzky Franz Vranitzky (; born 4 October 1937) is an Austrian politician. A member of the Social Democratic Party of Austria (SPÖ), he was Chancellor of Austria from 1986 to 1997. Early life and career As the son of a foundryman, Vranitzky was born in ...

(who had been Androsch's secretary, and would later rise to chancellorship) had conspired with Kreisky, "who was simply jealous", (and with political opponent

Alois Mock Alois Mock (10 June 1934 – 1 June 2017) was an Austrian politician and member of the Austrian People's Party (ÖVP). He was Vice Chancellor of Austria from 1987 to 1989. As foreign minister, he helped take Austria into the European Union. Lif ...

) to "construe the financial and legal proceedings against him", that would not be finally settled for the following 16 years. "I had no chance to even be heard. And many who have participated in this vendetta would now rather pretend that nothing had ever happened." A central point of Androsch's defence concerning his personal finances — he claimed that a rich "uncle-by-choice" ("Wahlonkel" in German) had provided him with significant funds, and habitually replied "alas, no" when asked if he was a millionaire — did not hold. On 8 October 1991 Androsch was convicted by the Vienna Regional Criminal Court of having evaded taxes between 1974 and 1983 in the amount of about five million Austrian schillings (roughly corresponding to EUR 500,000 expressed in 2010 currency), a minuscule fraction of the original allegations. He was sentenced to a fine of 1.8 million Austrian schillings. A legally separate but politically related affair (a conviction for false testimony to the parliamentary examination board investigating the scandal surrounding the

Vienna General Hospital The Vienna General Hospital (german: Allgemeines Krankenhaus der Stadt Wien), usually abbreviated to AKH, is the general hospital of the city of Vienna, Austria. It is also the city's university hospital, and the site of the Medical Unive ...

) forced Androsch to resign from the Creditanstalt post in January 1988. With the help of a Swiss member of the

Bilderberg Group The Bilderberg meeting (also known as the Bilderberg Group) is an annual off-the-record conference established in 1954 to foster dialogue between Europe and North America. The group's agenda, originally to prevent another world war, is now defi ...

, he became a consultant to the

World Bank The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...

, especially for China and parts of Africa, until 1989. Androsch is a former member of the Steering Committee of the Bilderberg Group.

Third career as an industrial investor

In 1989 Androsch founded AIC Androsch International Management Consulting GmbH, which in 1994 commenced its corporate investment and acquisition activity. Its offices are situated at the Ringstraße, opposite the Vienna opera house. By way of AIC, Androsch is co-owner and president of the supervisory board of the following Austrian companies: *Austria Technologie und Systemtechnik (AT&S) AG, Europe's largest manufacturer of

printed circuit boards A printed circuit board (PCB; also printed wiring board or PWB) is a medium used in electrical and electronic engineering to connect electronic components to one another in a controlled manner. It takes the form of a laminated sandwich struc ...

with offices in Vienna and

Leoben Leoben () is a Styrian city in central Austria, located on the Mur river. With a population of about 25,000 it is a local industrial centre and hosts the University of Leoben, which specialises in mining. The Peace of Leoben, an armistice bet ...

*Salinen Austria AG, Austria's salt mining and processing company and a significant player in Europe *bwin.com Interactive Entertainment AG, a developer and marketer of

online gambling Online gambling is any kind of gambling conducted on the internet. This includes virtual poker, casinos and sports betting. The first online gambling venue opened to the general public was ticketing for the Liechtenstein International Lottery i ...

and gaming products in Vienna Former investments of Androsch's holdings included major stakes in Future Advanced Composite Components (FACC) AG in

Ried im Innkreis Ried im Innkreis (Central Bavarian: ''Riad'') is a town in the Austrian state of Upper Austria, approximately west of Linz and north of Salzburg. It is the capital of the district of Ried im Innkreis, and it serves as the administrative centre ...

(acquired by

Xi'an Aircraft Industrial Corporation Xi'an Aircraft Industrial Corporation, also known as Xi'an Aircraft Company Limited (XAC), is a Chinese aircraft manufacturer and developer of large and medium-sized airplanes. It is based in Yanliang District, Xi'an, Shaanxi Province, adja ...

in 2009) and in

KTM KTM AG (Kraftfahrzeug Trunkenpolz Mattighofen, formerly KTM Sportmotorcycle AG) is an Austrian motorcycle, bicycle and sports car manufacturer owned by Pierer Mobility AG and the Indian manufacturer Bajaj Auto. It was formed in 1992 but traces ...

Sportmotorcycle AG. In 2000, he was a major founding investor of Austrian prepaid payment method paysafecard, until it was finally sold to British Skrill group for 140 million euros in 2014. Androsch is also president of the supervisory board of the

Austrian Institute of Technology AIT Austrian Institute of Technology is Austria's largest Research and Technology Organization (RTO), employing about 1,300 people mostly based at the main facilities Vienna Tech Gate, Vienna TECHbase, Seibersdorf, Wiener Neustadt, Ranshofen and G ...

(AIT; formerly Austrian Research Centers, ARC) in

Seibersdorf Seibersdorf is an Austrian market town with 1,283 residents in the District of Baden in Lower Austria. Geography Seibersdorf lies in the industrial belt of Lower Austria. The municipality has an area of 20.2 km², 9.36 percent of which is fo ...

, and deputy chairman of the supervisory board of FIMBAG Finanzmarktbeteiligung AG, the vehicle through which the state-owned Österreichische Industrieholding controls its stakes in Austrian banking system. He has been chairman of the Council of the

University of Leoben The University of Leoben (German: ''Montanuniversität Leoben'') in Austria is the country's university for mining, metallurgy and materials. It was founded on 4 November 1840 as the ''Steiermärkisch-Ständische Montanlehranstalt'' in Vordernbe ...

. Following the collapse of

Refco Refco was a New York City-based financial services company, primarily known as a broker of commodities and futures contracts. It was founded in 1969 by Raymond Earl Friedman as Ray E. Friedman and Co. Prior to its collapse in October, 2005, the ...

, a class-action lawsuitsuit in the US caused considerable difficulties for BAWAG P.S.K., the Austrian trade union's bank. Androsch and other Austrian investors formed a consortium with

Cerberus Capital Management Cerberus Capital Management, L.P. is an American private equity firm,Leaders Magazine"Providing Economic Opportunity: An Interview with The Honorable Dan Quayle, Chairman, Cerberus Global Investments, LLC". specializing in distressed investing. ...

, which acquired the bank in 2006. In 2006 the Austrian economics magazine ''trend'' estimated Androsch's wealth at EUR 420 million, ranking him 25th among the wealthiest Austrians. Using a modified rating that also considered networking, the magazine ranked him the 22nd most powerful person in Austria's economy in 2009.

Research sponsorships

On 21 June 2004, the founding session of the Hannes Androsch Foundation within the Austrian Academy of Sciences was held. It is dedicated to "the consolidation of social balance and peace." Androsch endowed it with EUR 1 million and committed himself to increase the annual budget to EUR 10 million until 2012. It awards the Hannes Androsch Prize (EUR 100,000 for 2011) for scientific contributions to its goals. According to the academy, this is the most important private non-profit foundation established in Austria since 1945. Androsch is a member of the fundraising committee of the

Institute of Molecular Biotechnology The Institute of Molecular Biotechnology (IMBA) is an independent biomedical research organisation founded by the Austrian Academy of Sciences in cooperation with the pharmaceutical company Boehringer Ingelheim. The institute employs around 250 ...

, a joint initiative of the Austrian Academy of Sciences and the pharmaceutical company Boehringer Ingelheim.

Honors

Androsch has been awarded a significant number of international honors, among them an honorary doctorate in economics from the

University of New Orleans The University of New Orleans (UNO) is a public research university in New Orleans, Louisiana. It is a member of the University of Louisiana System and the Urban 13 association. It is classified among "R2: Doctoral Universities – High rese ...

* Grand Decoration of Honour in Gold with Sash of the

Decoration of Honour for Services to the Republic of Austria The Decoration of Honour for Services to the Republic of Austria (german: Ehrenzeichen für Verdienste um die Republik Österreich) is a state decoration of the Republic of Austria. It is divided into 15 classes and is the highest award in the A ...

(1974) *

Order of Merit of the Republic of Poland The Order of Merit of the Republic of Poland ( pl, Order Zasługi Rzeczypospolitej Polskiej) is a Polish order of merit created in 1974, awarded to persons who have rendered great service to Poland. It is granted to foreigners or Poles resident a ...

, 2nd class (1977) * Medal of

Tyrol Tyrol (; historically the Tyrole; de-AT, Tirol ; it, Tirolo) is a historical region in the Alps - in Northern Italy and western Austria. The area was historically the core of the County of Tyrol, part of the Holy Roman Empire, Austrian Emp ...

(1978) * Commemorative Medal of the Parliament of the

Czech Republic The Czech Republic, or simply Czechia, is a landlocked country in Central Europe. Historically known as Bohemia, it is bordered by Austria to the south, Germany to the west, Poland to the northeast, and Slovakia to the southeast. The ...

(1979) * Grand Cross of the

Order of the Polar Star The Royal Order of the Polar Star ( Swedish: ''Kungliga Nordstjärneorden'') is a Swedish order of chivalry created by King Frederick I on 23 February 1748, together with the Order of the Sword and the Order of the Seraphim. The Order of t ...

(Sweden, 1979) * Honorary Ring of

Altaussee Altaussee (Central Bavarian: ''Oid Aussee'') is a municipality and spa town in the district of Liezen in Styria, Austria. The small village is nestled on the shores of the Lake Altaussee, beneath the Loser Plateau. Occupying an area of 92 ...

(1998) * Grand Gold Decoration with Star of Styria (1998) * Cross of Honour of the Workers' Samaritan Federation on Red-White-Red Sash (2000) * Gold Medal of the Society of St. Christoph (2001) * Honorary Ring of

(2002) * Viktor eagle badge of the SPÖ (2003) * Medal of Hall in Tirol (2003) * Honorary Ring of

Fehring Fehring is a municipality in the district of Südoststeiermark in Styria, Austria. The landscape is rolling hills cut by the valley of the Raab. Fehring is on a socket some metres above the valley floor. The town is bordered to the east by B ...

(2004) * Sigillum Civitatis in Leoben (Seal of the citizenship of Leoben) (2005) * Honorary Senator of the University of Mining Leoben (2008) *

Austrian Cross of Honour for Science and Art The Austrian Decoration for Science and Art (german: Österreichisches Ehrenzeichen für Wissenschaft und Kunst) is a state decoration of the Republic of Austria and forms part of the Austrian national honours system. History The "Austrian ...

, 1st class (2008) * Honorary Senator of the

(1983) * Honorary citizen of

Fohnsdorf Fohnsdorf () is a municipality in the district of Murtal in Styria, Austria Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a fede ...

(1998) * Honorary Member of the Vienna Economic Club (2001) * Appointed a new, highly productive reservoir part in Altaussee salt mine (Hannes Androsch horizon) (2003) * Honorary Chairman of the Workers' Samaritan Federation (2005) * Honorary Citizen of Leoben (2008) * Honorary Member of the Musikalische Jugend Österreichs

Sources

Androsch biography at the website of the Austrian ParliamentAndrosch biography by Robert Sterk
(German)
"Es war nie eine Vater-Sohn-Beziehung"
(It never was a father-son relationship"). Interview given to the newspaper Die Presse, 28 February 2010
"Der Kanzler war einfach eifersüchtig"
("The chancellor was simply jealous"). Interview given to the newspaper Die Presse, 20 March 2010
"Da hast du keine Chance gehabt"
(You've never had a chance"). Interview given to the newspaper Die Presse, 27 March 2010