Industry supports efforts to strengthen Europe as a business location – but warns against protectionist tendencies

With the Industrial Accelerator Act, the European Commission has now, following lengthy negotiations, presented a key measure to strengthen European value creation. Christoph Neumayer, Secretary General of the Federation of Austrian Industries (IV), states: “The recent global crises have starkly highlighted the risks of one-sided dependencies and the vulnerability of key supply chains. When other global powers pursue aggressive economic policies and use tariffs or subsidies as economic leverage, Europe must expand its industrial policy toolkit.”

The Industrial Accelerator Act aims to significantly increase industrial value creation in Europe and make strategic sectors more resilient. This goal is expressly supported. However, the specific implementation is crucial.

Faster Approval Procedures

The focus on accelerated procedures for industrial projects is positive. Single points of contact, binding deadlines, and digital approval procedures can significantly facilitate investment. The approach of “Acceleration Areas,” where projects are bundled and procedures simplified, is also a step in the right direction.

The proposed presumption of approval and the designation of certain projects as being in the overriding public interest are important signals that the Federation of Austrian Industries has been vigorously advocating for years—as exemplified by the Location Development Act. However, it remains unclear to what extent these instruments can actually be implemented in practice. There is disagreement among member states regarding these measures. What is needed here is swift implementation and legal certainty.

More momentum for European value creation, but without rampant protectionism

Europe’s strategic capacity to act begins with its economic strength. Without a competitive industrial sector, there can be neither sovereignty nor security. It is therefore high time to place Europe’s competitiveness at the center of EU legislation as a strategic priority. “From the perspective of the Federation of Austrian Industries, it is also of crucial importance that Europe does not fall into a spiral of protectionist measures. Protectionism would particularly affect those export-oriented sectors that contribute to Europe’s prosperity. Europe’s growth and prosperity are inextricably linked to its ability to attract foreign direct investment and trade with the rest of the world,” said Neumayer. The European Commission’s recently published proposal has sought to address these concerns. It remains to be seen how “Made in Europe” will develop over the course of the legislative process.

Balanced Investment Screening

The proposal sets out new guidelines for foreign direct investment in strategic sectors. Any tightening of investment screening should follow a risk-based and balanced approach. At the same time, it is essential to keep the attractiveness of Europe as an investment destination in mind.