Austria’s industrialists demand reform results and less bureaucracy

Industry representatives in Lower Austria have called for faster reforms and improved business conditions, with bureaucracy reduction a central demand at the Lower Austrian Industry Day in Grafenegg, ORF reported.

The event brought State Secretary Sepp Schellhorn of NEOS and Lower Austrian Governor Johanna Mikl-Leitner of the Austrian People’s Party together for a panel discussion after Schellhorn had accused the states governed by the coalition parties of blocking reforms.

Schellhorn said they had discussed the dispute and agreed that the federal government and the states should not attack one another, but instead work together to strengthen Austria as a business location. Mikl-Leitner did not address the conflict directly, and the two later made a conciliatory gesture on stage.

Kari Ochsner, president of the Federation of Austrian Industries in Lower Austria, said the gesture could not hide the problems facing industry. Labour costs were too high, he said, putting Austrian industry at an international disadvantage.

Ochsner called for reforms in pensions, healthcare and the social security system. He also rejected any additional burdens on businesses. With two and a half years remaining until the next election in 2029, he said, politicians must ensure that major reforms are achieved before then. The responsibility lay not only with the government, but also with the opposition and interest groups, he added.

Chancellor Christian Stocker of the Austrian People’s Party pointed to the government’s achievements and said industry could see “a glimmer of hope”. He acknowledged that bureaucracy was excessive and said it cost companies 15 billion euros a year.

“We are now dismantling this web of bureaucracy step by step,” Stocker said. He added that a three-party coalition with often differing priorities required compromise to deliver results.

Mikl-Leitner called for more common sense, saying that not every challenge required a new law and not every problem a new regulation. She referred to Lower Austria’s Economic Strategy 2030+, which aims to reduce bureaucracy.

She criticised proposals for new taxes and charges, shorter working hours with full wage compensation, and additional recording or reporting obligations. While other continents were advancing rapidly in artificial intelligence, semiconductor production and other modern technologies, Austria was focusing on packaging regulations, the supply chain law and pay transparency, she said. “Something is going wrong here,” Mikl-Leitner said.

Schellhorn said 92 percent of a deregulation package containing 113 measures, adopted in December, had been completed. Only reporting obligations and wage tax legislation were still pending, he said.

The differing assessments of progress on cutting bureaucracy were discussed during a reception for 800 guests in the park of Grafenegg Castle.