Bureaucracy for companies: “Not tedious, but threatening to existence”

The total number of words in EU legal acts has doubled from around 10 million words per year to almost 20 million words since 2010, according to economic research institute Eco Austria. This development would put more and more companies under strain: “The bureaucracy is not only tedious, it is a threat to their existence,” said Hummer at a press conference on Monday. According to a survey by the Chamber of Commerce among 3,400 domestic companies, 65 percent would like to see a reduction in information and reporting requirements.

The density of bureaucracy is also high in Austria: 196 laws (from the Working Hours Act to the Employment of Foreigners and Data Protection Act) contain a total of around 6,400 administrative penalties. According to the Chamber of Commerce, there are also 5,000 industry-specific penalties and 930 criminal offenses in the environmental sector. “Because of the flood of bureaucracy, investments are already being relocated abroad,” warned Hummer.

From coffee to CO2 to waste transport

The EU Deforestation Regulation was cited as an example: This affects more than 100,000 Austrian companies that process or sell raw materials such as coffee, cocoa, palm oil, wood or meat. For example, the regulation means that a coffee roaster must provide the exact geodata of the location of the coffee plants used. For a local confectioner, the same applies to the cocoa beans that he processes into pralines.

Sustainability reports also require effort: Austrian companies that buy certain goods (e.g. screws) in other EU countries must document the greenhouse gas emissions caused there and submit a report to the customs office.

Additional bureaucracy also arises when transporting waste: if the total weight is more than ten tonnes, transport by rail is mandatory. However, this is usually not possible due to a lack of capacity: the companies have to prove this with confirmation.

Suggestions for simplification

The approaches to administrative reforms have been known for a long time, says lawyer and university professor Mathis Fister: For example, the principle of “one in – one out” (for every new regulation one is eliminated) or in individual cases so-called “sunset clauses” that give the requirements an expiry date attribute.

“}”>