Austria Races to Revitalize Industry with €215M Investment, Targeting Global Companies
Linz, Austria – July 31, 2025, 20:08 – In a rare display of cross-party cooperation, Austria’s government is launching a major initiative to bolster its industrial sector and attract international investment. A combined effort from Minister of Infrastructure Peter Hanke (SPÖ), Minister of Economics Wolfgang Hattmannsdorfer (ÖVP), and State Secretary Sepp Schellhorn (Neos) will see €215 million in grants allocated to projects focused on climate-friendly industrial practices and attracting foreign businesses. This comes as Austria faces increasing competition from economic powerhouses like Germany and France.
Declining Investment: A Wake-Up Call for Austria
Recent data paints a concerning picture. The number of new company settlements in Austria has fallen from 364 in 2021 to just 309 in 2024. This decline is mirrored in job creation, with new positions dropping from 3,403 to 2,216 over the same period. These figures underscore a growing concern that Austria is losing its competitive edge. The urgency of the situation is driving this unprecedented collaboration across the political spectrum.
“Transformation of Industry” Initiative: Funding Details & Focus
The core of the government’s response is the “Transformation of Industry” research initiative. The Ministry of Infrastructure will contribute €115 million this year and in 2026, supplemented by a further €100 million from the Ministry of Economic Affairs. Applications for these grants will open in September, with Minister Hanke emphasizing the focus on “greening” Austrian industry – supporting projects that facilitate the energy transition. Minister Hattmannsdorfer’s funding call begins next week, with a particular emphasis on improving energy efficiency.
Why International Investment Matters to Austria’s Economy
The stakes are high. According to Minister Hattmannsdorfer, international settlements contribute a staggering €106.4 billion annually to Austria’s economic output – nearly 29% of the country’s total GDP. The government isn’t just aiming to attract new businesses; it’s also focused on incentivizing domestic companies to invest and expand within Austria. Upper Austria’s state captain, Thomas Stelzer, echoed this sentiment, stating that bolstering the region’s economic attractiveness is a “most important task.”
Beyond the Numbers: Austria’s Long-Term Strategy
This isn’t simply about short-term economic gains. Austria is strategically positioning itself to capitalize on the global shift towards sustainable industrial practices. By investing in green technologies and energy efficiency, the country aims to become a leader in environmentally responsible manufacturing. This approach not only attracts companies committed to sustainability but also safeguards Austria’s long-term economic resilience. The initiative also acknowledges the importance of a skilled workforce; future programs are expected to focus on retraining and upskilling initiatives to meet the demands of a changing industrial landscape. This proactive approach is crucial for maintaining Austria’s position as a desirable location for high-value industries.
The combined efforts of these ministers, representing a broad political spectrum, signal a unified commitment to securing Austria’s economic future. The success of this €215 million investment will be closely watched, not only by businesses within Austria but also by potential investors around the globe. Archyde.com will continue to provide updates on the “Transformation of Industry” initiative and its impact on Austria’s economic landscape. Stay tuned for further analysis and insights into the evolving dynamics of the Austrian economy and the broader European industrial sector.
