New EU Commission: Advocating for Reduced Bureaucracy in Industry

Brussels/Vienna – At the start of the new EU Commission, Austria’s Federation of Industries (IV) has reiterated its call for deregulation and a reduction in bureaucracy. During a press conference in Brussels on Thursday, IV President Georg Knill stated that the EU Supply Chain Directive could be halted swiftly. However, employee representatives caution against hasty decisions.

Knill expressed approval that the EU Commission is beginning to consider the impact on competitiveness when enacting new legislation. He emphasized the need for additional measures, as regulations “significantly burden” businesses and lead to high costs. This issue is not only present at the EU level but also affects Austria, where local authorities often seek to be “model students” in implementing EU legislation, despite potential inefficiencies caused by federalism.

In addition to advocating for a suspension of the EU Supply Chain Directive (which EU countries must implement by mid-2026), Knill proposed introducing an expiration date for new laws. This would mean that new regulations would automatically cease after a specified period and require reevaluation by legislators. He believes that the EU internal market could be enhanced by eliminating national “protectionism” and that a unified European power grid might help lower energy expenses.

Currently, issues related to competitiveness and bureaucracy reduction are hot topics in Brussels and across the EU. However, warnings against impulsive actions have emerged, such as from Austria’s Chamber of Labour (AK), which highlighted earlier this week that easing administrative burdens could risk jeopardizing social and environmental standards.

The AK pointed out that the EU Commission referred to the protection of workers from asbestos in a report about administrative burdens as a mere inconvenience, neglecting to consider the associated health costs, workforce capabilities, and subsequent tax and social security implications. Furthermore, the definition of “Small and Medium Enterprises” (SMEs) has been expanding, now encompassing the majority of businesses. (05.12.2024)