Austria's industry in crisis: Is deinstustrialization real?

Austria's industry in crisis: Is deinstustrialization real?

In Austria there is an alarm mood in industry! Sigi Menz, chairman of the federal division industry in the Austria Chamber of Commerce (WKÖ), describes the recent statements of the Chamber of Labor as "strange". These emphasized that industry looks back over an excellent decade. In view of the bankruptcies in the manufacturing area and the approaching third recession year, Menz sees this as grossly misleading. The sunken sales prices, high costs and massive requirements particularly push on the metal -technical industry, which has a strong impact on competitiveness. A survey result of around 130 companies shows that every second company is already thinking about relocation or actually implementing it, mainly to Eastern European countries and the USA. These emigration led to over 5,000 jobs in Austria lost, while new ones were created abroad. Menz warns urgently: "If location policy is not urgently addressed, dein industrialization becomes a bitter reality."

free trade and new opportunities

At the same time there is also positive news. The Austrian industry welcomes the agreement between the EU and the Mercosur countries, which is a strong sign of life for regulated free trade in times of global tensions. Menz emphasizes that the creation of one of the largest free trade zones in the world has significant growth opportunities, especially in these challenging times. Austria already has a commercial surplus with the Mercosur countries such as Argentina, Brazil and Uruguay, with important export sectors of medicinal products, chemicals and machines. The new agreement will abolish the tariffs to over 90% of the goods and enables access to strategically important raw materials. Menz also emphasizes that the agreement also complies with ecological and social standards in order to take into account the concerns of environmental and climate protection officers. "This agreement is a sign of clever international trade policy," says Menz.