The European internal market should be further developed

2024-03-05 11:45:09

Economics Minister Martin Kocher and European Minister Karoline Edtstadler (both ÖVP) sang praises for the European internal market on Tuesday, but called for urgent further development of this “successful model”. After almost 35 years, an adaptation is appropriate and understandable. It is important to quickly adapt to the new geopolitical challenges; the next EU Commission following the EU elections in June must make this a top priority.

“The internal market must be realigned,” said Kocher in light of an increasingly harsh international situation. This is necessary to preserve prosperity in Austria and Europe. The next EU Commission must “rethink the framework conditions,” demanded Edtstadler. This is already happening and Austria is getting involved. Initial preparatory work is underway, says Kocher. Vienna is contributing points in Brussels, especially in the interests of the domestic, small-scale economy with its many small and medium-sized enterprises (SMEs). Overall, the issue is central for all people in Austria and Europe because the economy secures jobs and prosperity.

This is particularly true when it comes to energy, says Kocher. He put forward the evergreen demand for an acceleration of approvals – especially around the entire topic of expanding renewables. Not only infrastructure and networks need to be expanded and fully integrated, the market design also needs to be addressed. In the past, the focus was on competition in the energy sector. “Now it’s regarding security and transformation, measures are needed in the internal market. The energy networks are not yet as integrated as they should be,” said the Labor and Economics Minister.

The aid framework also needs to be redesigned, said Edtstadler. When it comes to energy, the focus is on security of supply and affordability. The availability of critical raw materials, technological change and training concepts are also topics.

Another evergreen – and a greater discordant tone in the song of praise – came from the politician’s particularly loud call for a reduction in bureaucracy at the EU level – “no hurdles, no brakes,” demanded Edtstadler. The aim must be to reduce the reporting requirements for companies in the EU by a quarter – for existing and future ones. That’s why the “pause for reflection” on the supply chain law is good, which Austria has so far not approved in Brussels and preferred to abstain. “A good purpose does not justify the wrong means,” said the minister. There is concern that smaller domestic companies might fall out of international supply chains because the requirements in the Supply Chain Act are too high. “We can’t afford that,” said Edtstadler regarding the EU plan.

First, existing rules had to actually be enforced. This applies, for example, to the protection of intellectual property. Or: Nowadays, employee postings should also be possible without paper forms, said Edtstadler, saying that we are in the “pre-stone age”.

“It must be attractive to invest, work and live here,” said Kocher. Europe’s strength lies in its innovative strength, research and development. This must be central to the required realignment of the internal market and the appearance vis-à-vis other regions of the world. “It’s regarding smart regulation; it has to be proportional and take into account the economic structure with small businesses.” A “structural relief from regulatory burdens” must be created.

Europe must still remain open to other parts of the world, emphasized Kocher. “We shouldn’t be naive; sovereignty needs to be strengthened where it is particularly important.”

You can “learn a lot” by looking at the measures in other regions of the world, even if Kocher once once more positioned himself “fundamentally once morest a subsidy race”. It’s regarding the issue of tax relief versus subsidies – you can look to the USA in this regard.

The internal market is “a protective shield that makes it possible to secure our supply chains in times of crisis,” commented the Secretary General of the Industrial Association (IV), Christoph Neumayer, in a press release. Around 70 percent of all Austrian foreign trade is achieved with other EU countries. Due to the abolition of the EU internal borders, domestic companies saved around 2.2 to 5.5 billion euros annually and investments by foreign companies in Austria increased fivefold. According to Kocher, annual growth is 0.5 points higher than what would be expected without participation, thanks to the internal market.

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