Industrial strategy

Government puts together billion-euro package for industry

Symbolic image(Bild: go-art Georg Ott www.georgott.co)

To strengthen Austria as a business location, the federal government wants to support the ailing industry with an investment package worth billions. Concrete measures were presented on Friday by the three-party coalition.

In addition to a state-subsidized industrial electricity price, the strategy focuses on investments in nine key technologies. 

2.6 billion euros
2.6 billion euros from the Research, Technology, and Innovation Pact (FTI Pact) are earmarked for investments until 2029. In addition, there are plans to simplify approval procedures.

114 measures in seven areas of action
New apprenticeships are also planned, and curricula will be adapted. Investments in key technologies will be supported by guarantees and liabilities. According to the Ministry of Economic Affairs, the industrial strategy comprises a total of 114 measures in seven areas of action, which are intended to bring Austria into the top 10 OECD countries.

Symbolic image(Bild: go-art Georg Ott www.georgott.co)

New apprenticeships for industry
The more than 100 pages of the industrial strategy contain measures relating to innovation research, for example. Funding programs are to be realigned and the location agency is to be restructured to attract leading companies from around the world. Austria's digital sovereignty is also to be brought into focus so that it is no longer dependent on foreign digital products. At least one new apprenticeship is to be developed for each of the nine defined key technologies.

Some of the measures at a glance:

• Halving the electricity tax by 2026
• Lifting of the ban on carbon capture and storage

• A new apprenticeship is to be developed for each key technology.

• Guiding principle "Made in Europe": Domestic companies and products are to be given preference in subsidies and public procurement
• Debureaucratization offensive: Reporting requirements for companies will be reduced, and one-stop or no-stop shop procedures will be introduced.

Ministers Schellhorn, Hattmannsdorfer, and Hanke have developed an industrial strategy.(Bild: APA/HANS KLAUS TECHT)

"Reasonable protectionism"
The nine key technologies include artificial intelligence and data innovation, chips and electronic components/systems, advanced production technologies and robotics, quantum technology and photonics, advanced materials, life sciences & biotech, energy and environmental technologies, mobility technologies, and space and aviation technologies.

In the Siemens Mobility Hall in Vienna, Federal Ministers Peter Hanke (SPÖ), Wolfgang Hattmannsdorfer (ÖVP), and State Secretary Sepp Schellhorn (NEOS) presented an industrial strategy for Austria for the first time. The main goals of this strategy are long-term economic growth, the creation of incentives for companies, and halting deindustrialization in our country. "Austria may not be a low-wage country, but it has many strengths," says Hattmannsdorfer.

According to Deregulation State Secretary Sepp Schellhorn, Austria has plummeted in the competitiveness rankings over the last five years: "This is an alarm signal!" One reason for this is excessive bureaucracy: "There should be adjustments here, for example with the Red-White-Red Card. We will also reform export controls." A one-stop-shop procedure for entrepreneurs and a no-stop-shop procedure for subsidies are to be promoted, and duplicate reporting requirements are to be prevented.

"Fear of death is also death itself"
"We can't do without industry," emphasizes Minister of Economic Affairs Hattmannsdorfer, who insists on a "patriotic subsidy policy" to "keep value creation in Austria." For this reason, an industrial electricity price based on the German model is to be introduced.

In addition to a concrete implementation program, the industrial strategy also provides for close monitoring until 2035: "Expert knowledge has been incorporated into this strategy – and it is a clear path to follow. However, this first package of measures will not be the last: we will continue to refine it. And in doing so, we must also take people with us," emphasizes Innovation Minister Peter Hank. "Key KPIs will be measured, evaluated, and adjusted annually if necessary," says Hattmannsdorfer, who also hopes for a turnaround in optimism, because "feared to death is also dead."