The level of bureaucracy in Austria has reached an “intolerable” point, a senior official from the Austrian Chamber of Commerce (WKÖ) has said.
“The cumulative extent of bureaucracy has reached a level that is no longer bearable,” said Christian Mandl, head of the WKÖ’s Department for European Policy. “For Austria – and this brings us to the government negotiations – we are calling for a dedicated ministerial responsibility for cutting bureaucracy.”
Mandl stressed that the issue is not just limited to Austria but extends to the EU as well. “It is time to agree on bureaucratic relief and simplification of EU regulations for businesses,” he said.
Over 70% of Austrian companies surveyed believe excessive regulation and bureaucracy are hindering their international competitiveness. Some businesses are even considering moving out of Europe, Mandl warned.
He also highlighted the negative impact on Austria’s international relations, citing the EU’s deforestation regulation. “If you bring up the deforestation regulation in Indonesia, you will be shown the door immediately.” Mandl pointed out that responsibility lies not only with the European Commission but also with the European Parliament and member states as co-legislators in the EU Council. Citing research from the Economic Research Institute EcoAustria, Mandl noted that for every euro Austrian companies save on compliance and reporting costs, GDP increases by €1.62.
“Gold Plating” Costs Billions
EcoAustria director Monika Köppl-Turyna referred to a study from her institute, which found that “gold plating” – the excessive national implementation of EU regulations – accounts for about 30% of Austria’s bureaucracy costs. “We have found that due to gold plating alone, Austria loses about one billion euros in GDP every year,” Köppl-Turyna explained. This figure would be even higher at current prices.
The KMU Research Group also calculated that Austrian trade and craft businesses spend around 70 million hours each year on bureaucratic tasks, which is nearly 7% of the total workforce capacity.
Redundant EU and national regulations cost the EU around €200 billion each year, which accounts for over 1% of the EU’s GDP, according to Köppl-Turyna, referencing the Draghi Report.
Köppl-Turyna argued that regulation should always be a last resort and proposed alternatives to the EU’s supply chain law, such as creating a pool of pre-screened suppliers to avoid repeated documentation. Similarly, the EU’s taxonomy regulation, designed to achieve climate goals, is “an inefficient way of achieving climate targets,” she added. She also criticised the EU’s pay transparency law as ineffective in addressing the gender pay gap.
Kocher Supports “Sunset Legislation”
Austria’s Economy Minister, Martin Kocher, expressed support for “Sunset Legislation,” which refers to laws that automatically expire unless renewed. However, Kocher acknowledged that this could reduce planning certainty for businesses. He also discussed the pros and cons of uniform EU regulations, noting that while they replace 27 different national rules, the implementation period creates challenges for coalition governments. “In a coalition, one party always has leverage to demand something additional in this area,” he said.
EU Commission Plans to Simplify Regulations
Elisabeth Werner, Deputy Secretary-General of the EU Commission, outlined efforts to reduce the bureaucratic burden on businesses. “The Commission aims to reduce reporting obligations by 25% without undermining political goals,” she said. This year, the Commission launched 41 initiatives that could save businesses up to €4 billion through simplified reporting requirements, including customs reporting, electronic VAT, and accounting regulations. She also highlighted plans to implement an E-Wallet for businesses, which would eliminate the need for repeated data submissions.
The Commission also plans to introduce a new category of companies – Small Midcaps – offering them similar reliefs as small and medium-sized enterprises (SMEs). Werner also noted that each Commissioner will be tasked with ensuring better implementation and simplification of EU regulations in their respective areas, with a goal to reduce reporting obligations for SMEs by 35%.
