Carinthia's companies under pressure: bureaucracy is slowing down the economy!

Carinthia's companies under pressure: bureaucracy is slowing down the economy!

There is a lot of turmoil in Carinthia: the local economy is under increasing pressure, which is mainly due to the flood of regulations and the madness of bureaucracy. Led by Carinthia's Economic Chamber President Jürgen Mandl, the situation is clearly stated. Despite the much-touted “buzz words” such as deregulation and de-bureaucratization, there are no serious simplifications. Mandl says that politicians have not understood the seriousness of the situation and urges people to make courageous decisions.

Control mania runs like a common thread through current developments. Finance Minister Marterbauer recently praised the “2025 control plan to combat wage and social dumping”, which focuses primarily on road transport. However, Mandl is critical of this plan, especially in view of the further burdens that small and medium-sized businesses will face: “I see the cancellation of the agreed weekly hours for employees from 2026 as additional harassment,” explains Mandl. In addition, the financial police are planning at least 1,300 checks this year, which will further increase the pressure on entrepreneurs.

Bureaucracy as a brake on growth

But that's not all. The effects of excessive bureaucracy are devastating. Companies spend more time dealing with regulations than actually doing business. “The regulations are not only burdensome, but also inefficient,” says Mandl, describing the situation. Lengthy construction law procedures and strict environmental regulations make life miserable for many companies in Carinthia.

• Kostenexplosion durch Bürokratie
• Wachstumsbremse für Innovationen
• Abwanderung von Betrieben bedroht regionale Wertschöpfung

Smaller companies suffer particularly from these conditions, which not only means a loss of jobs and know-how, but also endangers the entire regional added value. Mandl is calling on the state government to implement over 80 concrete measures to reduce bureaucracy, including simplifying regulations and digitizing administrative processes.

A call to action

The need for practical solutions is essential. “We need regulations that can actually be implemented and promote innovation and competitiveness,” emphasizes Mandl. The EU is also contributing to the problem, as legal requirements such as the Supply Chain Act are making the situation even worse. A sign that there could also be a rethink in the EU is the announcement by Commission President Ursula von der Leyen that the supply chain law will be “significantly slimmed down”.

Over-bureaucratization has long since reached a level that is no longer sustainable. As past findings show, it requires durability in the administration in order to reform current structures. “Real de-bureaucratization must be tackled now before more companies throw in the towel,” concluded Mandl.

It remains to be seen whether those responsible in politics will finally take the necessary steps to improve the conditions for Carinthia's companies, or whether the bureaucratic madness will continue to inhibit economic growth.