The EU Main Committee met for consultations ahead of the special EU summit on April 17th and 18th
Vienna (PK) – Planned measures to improve the EU’s competitiveness, the situation in the Middle East and Ukraine as well as the EU’s future relations with Turkey were the focus of the deliberations of the National Council’s main committee responsible for EU affairs, which met today in the run-up to the special EU summit met for a meeting on April 17th and 18th. Both Chancellor Karl Nehammer and European Minister Karoline Edtstadler welcomed the EU’s plan to place a stronger focus on industrial policy in the future. The industry must remain competitive in global competition, they emphasized. Nehammer is particularly concerned about reducing bureaucracy – including in the area of agriculture.
The Chancellor brought “good news” with regard to securing domestic gas supplies. According to him, due to the mild winter, the gas storage facilities are still 75% full. He also sees Austria as fundamentally well prepared in the event that there is a total failure of Russian gas deliveries as a result of a stop in gas transit through Ukraine or as a result of other events. In connection with Iran’s attacks on Israel, the Chancellor emphasized Austria’s solidarity with Israel, but called for “maintaining rationality.”
Two motions from the FPÖ did not receive a majority. On the one hand, they aimed to end the EU accession negotiations with Turkey and to establish effective and complete border protection on the EU’s external border with Turkey. On the other hand, Petra Steger and Axel Kassegger pushed for a “technology-neutral” economic and industrial policy for the EU, including a move away from “climate bans” and an end to the Russia sanctions. These would cause enormous damage to both Europe and the domestic economy and endanger Austria’s energy supply, they argued. The FPÖ is also opposed to further joint borrowing by the member states of the European Union. However, in the vote, the FPÖ was left alone with this initiative; the Turkey proposal also received the approval of NEOS.
Nehammer sees a shift in the EU when it comes to technological openness
Chancellor Nehammer believes it is right that the EU wants to focus more on the issue of competitiveness in the future, which, according to him, includes strengthening the internal market, a pan-European industrial policy, better regulation and strong agriculture. A reduction in administrative burdens is essential for both the economy and agriculture, he emphasized. He considers extensive documentation requirements to be a major problem, especially for smaller companies, and would also contribute to a distortion of competition in favor of large companies. There also needs to be more planning for agriculture and industry.
When asked by the SPÖ about Austria’s negative attitude towards the supply chain law, Nehammer said that the directive was “well-intentioned, but not well-made”. The ÖVP is not against the intention of the supply chain law, but rather rejects the way it is implemented. Here too, he fears particular disadvantages for small businesses. However, he viewed plans for a capital markets union as positive: a European capital market is needed so that more risk capital is available. Regarding proposals for a Europe-wide minimum corporate tax of 25%, Nehammer noted that Austria also faces strong competition globally.
In the direction of the FPÖ, the Chancellor assured that there was a “clear rejection” by Austria when it came to further mutualization of debts. He also sees “a shift” in the EU on the subject of technological openness. There will now be a stronger focus on innovation and research. When it comes to strengthening the circular economy, an issue raised by the Greens, the Chancellor is also focusing on “innovative power” instead of regulation.
European Minister Edtstadler also pushed for fewer regulations. The internal market should be a booster and not a brake for Austrian companies, she advocated for strengthening the EU’s competitiveness.
Further support for Ukraine
As far as Ukraine is concerned, Nehammer believes it is essential that the EU continues to provide comprehensive support to the country, describing Austria as still a “solidarity partner”. Any form of weakness would encourage Russia to launch further attacks, he believes. Russia should not encourage such expectations.
In contrast to the FPÖ, Nehammer also does not want to shake up the Russia sanctions. These may not have worked as quickly as expected because Russia quickly switched to a “war economy,” he said, but they would work. This made Russia’s access to high technology more difficult. In order to prevent the sanctions from being circumvented, the Chancellor believes it is important to get the BRICS states – such as China, India and South Africa – “on board”. Their involvement is also essential if one wants to achieve a “sustainable and just” peace.
As far as gas supplies are concerned, according to Nehammer, Austria has already taken some precautionary measures in the event of a total failure of gas supplies from Russia. In addition to the obligation to stockpile gas, he referred in this context to securing pipeline capacities, the construction of a second pipeline to Germany and agreed gas deliveries from Norway. Due to the mild winter, the gas storage facilities are currently 75% full. Nehammer was reacting to statements by FPÖ MP Kassegger that it would not be possible to replace Russia’s gas imports with renewable energy.
Regarding Raiffeisen Bank’s intended withdrawal from the Russian market, Nehammer stated that he had no indication that Raiffeisen was planning to say goodbye to the exit. According to Raiffeisen, “sanction compliance” would also be meticulously adhered to. Previously, SPÖ MP Kai Jan Krainer reported on an article in the Financial Times that Raiffeisen had increased its staff in Russia over the past two years and was now looking for more than 3,000 new employees. This looks more like massive expansion plans than an exit, he said.
Nehammer concerned about the situation in the Middle East
Nehammer was concerned about the situation in the Middle East. With Iran’s direct attack on Israel, a new level of escalation had been reached, he said. Austria unequivocally condemned this “completely irresponsible” attack and summoned the Iranian ambassador. In this context, Nehammer also expressed full solidarity with Israel, but on the other hand also believes it is important to “preserve rationality.” European Minister Edtstadler was pleased that Israel was able to eliminate 99% of drones and cruise missiles.
As far as the situation of the hostages in the Gaza Strip is concerned, Nehammer emphasized that Austria is continuing its efforts in bilateral contacts to achieve the release of the hostages or at least humanitarian access to them. There are currently no signs of life from the hostages and no reliable sources as to how many hostages are actually alive. Austria would also continue to provide humanitarian aid in the Gaza Strip, although, according to Nehammer, Hamas could significantly improve the population’s situation “from one day to the next” if it laid down its weapons.
Realignment of relations with Türkiye
Nehammer expressly welcomed the EU strategy paper on the realignment of relations between the EU and Turkey. He is convinced that a new type of cooperation would benefit both sides more than the current standstill in the accession negotiations. In general, he believes there is no alternative to maintaining relations between the EU and Turkey: In his opinion, it would be fatal if Turkey were to be lost as a geostrategic partner. ÖVP MP Wolfgang Gerstl also emphasized this.
FPÖ MP Petra Steger had previously criticized Austria and the EU for applying double standards when it came to sanctions. Although Turkey has “invaded” Syria in violation of international law and is bombing Iraq, billions in “pre-accession aid” are flowing to Turkey. In her opinion, the “refugee deal” with Turkey should also be ended. The EU should not allow itself to be constantly “blackmailed” by Turkey, she explained.
NEOS MP Nikolaus Scherak also joined the FPÖ’s call for an end to accession negotiations with Turkey. These did not achieve what was intended, on the contrary, he argued. It is therefore necessary to “draw a line in the sand”. In this sense, Scherak also welcomes the Austrian position on the realignment of relations planned by the EU.
Strengthening the EU’s competitiveness: Opposition demands action
As far as the planned strengthening of the EU’s competitiveness is concerned, Scherak and FPÖ MP Kassegger called for action. Words alone are not enough; the inherently good intentions of the strategy must be brought to life, said Scherak. He also claimed that Austria was ultimately always involved in regulatory steps, with the exception of the rejection of the Supply Chain Act.
FPÖ MP Kassegger sees the EU strategy for competitiveness as “a series of empty words”. In practice, the exact opposite happens, he said, talking about “bureaucratic madness” that harms European competitiveness in a global context. In his opinion, from a global perspective, it will not help at all to “zero” greenhouse gas emissions in Europe; this would only weaken European industry. The Corona lockdowns also had a negative impact on Europe’s performance.
Kassegger also criticized the EU’s debt policy and the zero interest rate policy of recent years as well as the EU migration policy. The “enormous costs” caused by migration would limit the scope for relieving the burden on companies.
Greens: Green Deal must not be lost sight of
On behalf of the ÖVP, Maria Theresia Niss emphasized the need to strengthen the European economic area and the internal market. There are still many areas where there are 27 different rules in the EU, she said. In addition, it is “the need of the hour” to counter the Green Deal with an “Industrial Deal”. There is a need to reduce bureaucracy. In the direction of the FPÖ and NEOS, Niss stated that the ÖVP was the only Austrian party in the European Parliament to vote against the supply chain law.
Michel Reimon (Greens), in contrast, warned against losing focus on climate policy. With the Green Deal, Commission President Van der Leyen had presented a very ambitious – if not entirely sufficient – climate plan, which must also be reflected in the new strategic agenda, he warned. He also sees a common denominator between climate policy and security policy; after all, countries like Russia, Iran and Saudi Arabia are “fossil-financed regimes”.
His parliamentary group colleague Elisabeth Götze pointed out that climate protection and the economy had been played off against each other for too long. One consequence of this is that other countries are “overtaking the EU” in the production of electric cars. In this sense, she considers it positive that there is now a stronger focus on the topic of competitiveness. One of Götze’s concerns is to promote the circular economy in order to save raw materials. With regard to agricultural policy, Götze emphasized that many local farmers would like to see better labeling of origin.
SPÖ insists on fair working conditions and affordable electricity prices
SPÖ MP Alois Stöger argued that fair working conditions are the heart of a fair internal market. In this sense, he called on Chancellor Nehammer to support the social dimension of the internal market. In his opinion, a European minimum wage is also needed so that Austrian companies remain competitive with Eastern European companies. Anyone who rejects a European supply chain law also ensures that domestic companies have to compete with companies that profit from child labor, emphasized Stöger. According to him, without reporting requirements it is difficult to manage the EU.
Stöger’s party colleague Michaela Schmidt misses the anchoring of goals such as affordability, security of supply and sustainability in the EU’s new electricity market design. Stable and affordable energy prices are important for both the population and companies, she emphasized. Schmidt also blamed “the incorrect design of the electricity market” as a key factor for the “price crisis”. It is also not acceptable for the public sector to invest a lot in the expansion of renewable energy while the fruits of the expansion end up with the energy companies. Petra Oberrauner (SPÖ) pointed out that a minimum rate of 25% for corporate tax would lead to harmonized competition.
The situation in the Middle East was addressed by, among others, ÖVP MPs Michaela Steinacker and Wolfgang Gerstl, with Steinacker expressly thanking Nehammer and Foreign Minister Alexander Schallenberg for their support of Israel and the continued existence of this democracy in the Middle East. Gerstl pointed out that the drones that Iran sent to Israel were the same ones that were sent by Russia towards Ukraine. Christian Oxonitsch (SPÖ) emphasized that everything must be done to prevent escalation and take steps that lead to peace.
Regarding the EU accession negotiations with the Western Balkan states mentioned by Steinacker, Europe Minister Edtstadler stated that Montenegro was confident that it would be able to meet the accession criteria by 2028. Albania is aiming for this by 2030. She does not want to change the existing principle of unanimity on essential issues, even if the EU expands. FPÖ MP Petra Steger had previously said that the enlargement debate should not lead to the abolition of the unanimity principle in the EU. (end) gs
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