Location is under pressure - putting competitiveness back at the top of the agenda
Europe is coming under increasing pressure as a business location - high prices for energy and labor, bureaucratic hurdles and growing competition from Asia, some of which are distorting competition with unfair practices, are paralyzing the growth potential of domestic and European industry. "In view of the numerous challenges, a rethink of European location policy and a strategic reorientation are needed to ensure Europe's long-term competitiveness and success," said IV President Georg Knill on the occasion of the location impulses for the next EU legislative period presented today by the German government. "In recent years, Europe has lost itself in numerous details and over-regulation, with good ideas and noble goals often being nipped in the bud by bureaucratic requirements," emphasizes Knill.
"This is why we need a strong location and competitiveness agenda again in the coming EU legislative period, one that strikes a balance between economic efficiency, ecological compatibility and social feasibility when implementing projects," says Knill, adding: "Against this backdrop, the location impulses are an important signal towards greater competitiveness in Europe and thus also in Austria. This paper addresses a number of points that are essential for domestic industry."
Implement and expand electricity price compensation
This includes, among other things, the expansion and continuation of electricity price compensation, which also urgently needs to be implemented at national level. Consistent application of the Site Development Act, particularly in the case of "overriding public interest", as well as the fictitious nature of approval procedures in order to be able to quickly implement projects that make a significant contribution to achieving climate targets, are also necessary steps to drive forward the green transformation.
Removing regulatory hurdles
"We support the call for an urgently needed regulatory breathing space for European companies and a so-called "bureaucratic cash fall". The bureaucratic burdens particularly affect companies in the industrial SME sector, which often have difficulties meeting all the requirements. In some areas, this is de facto impossible," says IV President Knill. The already announced reduction in reporting obligations by 25 percent as well as the introduction of sunset clauses and the consistent application of the one-in-two-out rule are urgently needed to ease the burden on companies.
Research, technology and innovation as factors for the future
In addition, the ambitious goals in the RTI sector, the strengthening of the national framework conditions and the research premium to increase the research quota as well as the strategic use of further IPCEI programs and the strengthening of key technologies and industries are of great importance to ensure R&D and production at the location. A clear commitment to increasing the budget of the 10th EU Research Framework Program from 2028 is essential in order to support the innovation cycle from basic to applied research through to market implementation and to promote technological freedom.
Skilled labor strategy and mobility
A comprehensive strategy for the immigration of skilled workers, particularly through the EU talent pool, improved intra-European mobility and rapid EU professional recognition are crucial in the current battle for the best brains. After all, the shortage of skilled workers is not just a challenge facing Austrian companies - European measures would provide positive relief in addition to national necessities such as reducing non-wage labor costs, expanding childcare and reforming unemployment insurance.
Completing the single market
Completing the internal market remains a key objective, as it is at the heart of the European economy. It is about dismantling trade barriers, simplifying cross-border services and establishing a genuine Capital Markets Union and Energy Union to achieve competitive energy prices in the long term, thus maximizing entrepreneurial freedom and boosting growth potential. Some steps, such as simplifying cross-border work through standardized, digital forms, as well as the creation of an EU technology exchange for deep-tech start-ups and the increased mobilization of private capital, have already been proposed in Enrico Letta's report.
Trade agreements as strategic assets
At a time of global uncertainties and economic challenges, a proactive and self-confident foreign trade policy is also necessary. The aim of the Austrian agenda must be to support an active EU trade policy that opens up markets for domestic industry, helps shape global trade standards and thus creates fair competitive conditions. Based on the experiences of recent years - the pandemic, the war in Ukraine, a sharp increase in protectionist measures and trade conflicts - it is also important to diversify trading partners and reduce one-sided dependencies. EU trade agreements are important instruments for this.