Tough times for hazel dormouse and co.: Government plans priority for 'strategic projects' of the economy

Six months after its grand unveiling, Austria's industrial strategy is facing criticism from businesses for its slow pace of implementation. The Federation of Austrian Industries reported that only 11 out of 117 planned measures have been put into action, leading to a somber assessment from affected companies.

While the government has approved measures like a new school subject on economic knowledge, critics argue these do not address core issues such as high bureaucracy, personnel, and energy costs. In response, the ruling coalition presented its own interim report, with Infrastructure Minister Peter Hanke (SPÖ) and Economy Minister Wolfgang Hattmannsdorfer (ÖVP) claiming significant progress. They highlighted initiatives like new funding for pilot plants and the establishment of a state-backed scale-up fund designed to attract more private capital for young companies.

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For the first time, the country has recognized that we have a financing problem here. We must direct our attention to the future and invest there. If you don't believe in the future, you will go under.

"For the first time, the country has recognized that we have a financing problem here," commented TTTech CEO Georg Kopetz on the scale-up fund, emphasizing the need to invest in the future. The government also points to decisions made in the past week, including the reduction of ancillary wage costs starting in 2028 and the introduction of an industrial electricity price. Michael Baminger, president of the industry lobby Österreichs Energie, noted that affordable electricity prices are a top priority for Austrians, according to a recent survey.

However, the state's subsidization of electricity prices is seen as a temporary fix. Kopetz suggests that the decreasing cost of renewable energy and faster expansion of power plants, grids, and storage are the best path to sustainable energy costs. To further accelerate development, the government is extending the principles of the recently passed Renewable Energy Expansion Acceleration Act (EABG) to broader economic sectors. Economy Minister Hattmannsdorfer stated, "The hazel dormouse is not more important than affordable electricity prices," signaling a potential shift in priorities to favor "strategic projects" and key technologies.

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The hazel dormouse is not more important than affordable electricity prices.