Study: Deregulation and Debureaucratization in Austria: Problem Identification and Proposals

To what extent do bureaucracy and regulation hinder Austria's position as a business location? A new EcoAustria study commissioned by the Federal Ministry for European and International Affairs (BMEIA) examines this question. The results show that consistent efforts to reduce bureaucracy could sustainably increase Austria's real economic growth and generate up to 20 billion euros in additional gross domestic product by 2032.

According to the study, Austrian companies currently devote about seven percent of their workforce to administrative tasks, with the annual cost of bureaucracy amounting to roughly 20 billion euros. Model calculations show that reducing the regulatory burden to the level of the Netherlands could increase real economic growth by about 0.6 percentage points annually. If this target were achieved by 2032, it would result in additional GDP of around 20 billion euros. Even a more moderate reduction in bureaucratic costs — to the level seen in Switzerland — would still generate additional GDP of around 6 billion euros by 2032.

The study is based on international economic analyses, macroeconomic modeling, and an evaluation of approximately 4,700 reports from the SEDA platform. Using modern machine-learning techniques, these reports were categorized into nine thematic areas and assessed alongside expert interviews. Frequently cited issues included lengthy approval and administrative procedures, duplication of efforts among government agencies, extensive reporting requirements, and insufficiently integrated digital processes.

Based on these findings, EcoAustria is developing guidelines for an effective strategy to reduce regulation and cut red tape. These include, for example, simpler and faster administrative procedures, greater digitization and integration among government agencies, and a more systematic evaluation of existing regulations.