AUSTRIA: Measures against de -industrialization required

AUSTRIA: Measures against de -industrialization required

Österreich, Österreich - On April 2, 2025, Kurt Egger, the spokesman for Economics and Industry at the Austrian People's Party (ÖVP), confirmed the urgency to sustainably strengthen the competitiveness of the business location of Austria and to counteract de -industrialization. In a recent press release from the ÖVP, it is emphasized that industry not only secures jobs, but also represents an essential basis for a functioning welfare state. Egger, who was recently elected chairman of the committee for economy, industry and energy, appealed to all parties to work for the economic future of the country.

A joint motion for resolution by ÖVP, SPÖ and NEOS calls for quick measures to strengthen the Austrian business location. In this context, Economic Minister Wolfgang Hattmannsdorfer announced a comprehensive industrial strategy that, in addition to labor costs and securing skilled workers, also deals with the topics of energy supply, research, innovation and internationalization. This underlines the findings of the ifo instituts , where the challenges of de-industrialization are analyzed in Europe.

necessary measures to secure skilled workers

A central component of the planned strategy is the skilled worker strategy, which includes a qualification offensive and strengthening teaching and vocational training. In this context, various measures have been announced, including the further development of the job profiles, a reform of the apprenticeship examination and a quality initiative in tourism training. The reduction of bureaucratic hurdles and the facilitation of approval processes are also on the agenda.

ÖVP energy spokeswoman Tanja Graf also called for a fundamental reform of the Austrian energy system. Planned innovations such as the modernization of market design or the update of the funding system in the Renewable Expansion Act (EAG) should help ensure price stability and sustainable energy supply. This is particularly important in view of the increasing energy costs that other European countries, such as Germany, are also difficult.

international challenges and the competition

The study by the IFO Institute also reveals developments in the German economy, which is currently under massive pressure. Companies such as Thyssenkrupp, Volkswagen, Bosch and Ford have to dismantle jobs, which indicates a generally declining competitiveness. Germany fell to 24th place in the IMD World Competitiveness Ranking from 2023, after a decline from 15th place in 2022. These figures illustrate the challenges that not only Austria, but all of Europe.

is particularly problematic, the shortage of skilled workers, which is forecast, is offset by around 728,000 missing specialists in Germany by 2027. Other factors such as high energy prices, dilapidated infrastructure and significant bureaucracy costs also contribute to the negative assessment of competitiveness. Germany is one of the final lights in the EU comparison, which is why the urgent reforms are essential in both Austria and Germany to secure the industrial basis.

Nevertheless, positive aspects such as Germany's innovative strength, which is reflected in high investments in research and development, counteract the challenges. This situation makes it clear that a common European effort is necessary to improve the competitive position in the global market and maintain both prosperity and social structures.