Bureaucracy blockade: Steyr Arms loses millions to Tunisia!

Bureaucracy blockade: Steyr Arms loses millions to Tunisia!

Steyr, Österreich - FPÖ-Wehrtroker Volker Reifenberger expressed sharp criticism of the Austrian bureaucracy, which stands in the way of the export chances of the arms manufacturer Steyr Arm. The loss of a lucrative order in Tunisia, in which Steyr Arms should deliver four sample assault rifles worth 9.5 million euros and future spare parts worth 20 to 25 million euros, is considered a serious economic setback. Reifenberger speaks of an economic suicide and demands more support for domestic companies that are hindered by bureaucratic hurdles. He emphasizes that the discrepancy between government rhetoric and reality is obvious, especially with regard to deregulation and bureaucracy.

The application for export permit, which Steyr Arms already submitted on December 20, 2024, required the approval of the Interior Ministry, which had to work closely with the Ministry of Foreign and Defense. The weapons should be in Tunisia by the beginning of March 2025, but there were delays for which the group received a deadline extension - initially until April 16 and then until May 6, 2025. Despite multiple inquiries from Steyr Arms to various ministries, including the Federal Chancellor and the Minister for Inside, Defense, Economy and Outside, the calls to help from the company were unanswered. The ministries referred to data protection and official taggness.

bureaucratic hurdles as a location disadvantage

The problems of Steyr Arms reflect a larger topic that the company affects not only in Austria, but also in Germany. In Germany, for example, regulation and bureaucracy have developed into a location disadvantage, as the DIHK reports. Over 95 percent of companies are calling for the reduction of bureaucracy in the 2024 European election. Political promises for relief are often contradicted to operational reality. Bureaucracy costs time and money, which has a negative impact on competitiveness.

The federal government in Germany estimates that the annual bureaucracy costs are 67 billion euros. In the current legislative period, there was only a limited discharge of around 3 billion euros, while new obligations were introduced. For example, regulations such as the sustainability reporting law and the EU supply chain directive lead to additional financial burdens for companies.

demands on the reform of bureaucracy

Reifenberger calls for an independent one-stop shop for export permits to ensure planning security for companies. This could provide similar advantages to initiatives proposed in Germany to reduce bureaucratic regulations. The National Stand Control Council (NKR) in Germany proposes measures that are intended to reduce bureaucracy costs by 25 percent within four years. A cultural change in the administration is necessary to reduce bureaucratic hurdles and to offer the necessary support.

The failure of the ÖVP-led government in the support of the domestic economy is sharply criticized by Reifenberger. He demands a policy that strengthens Austria and takes the concerns of companies seriously. The current problems of Steyr Arms could serve as a wake -up call for rethinking in bureaucracy policy, not only in Austria, but also in other European countries.

In order to ensure competitiveness sustainably, targeted measures must be taken in both Austria and Germany, to reduce bureaucracy and thus promote companies.