Badelt for Yes to Mercosur Agreement

According to Badelt, who presented the Productivity Report 2025 on Wednesday, the industry in Austria is suffering from US tariffs and urgently needs new sales markets. Therefore, Badelt advises the government to vote for the Mercosur agreement.

Austria Could Be the Decisive Factor in the Mercosur Agreement

"We simply cannot afford to do without Mercosur," said Badelt. His impression is that Austrian politicians want the trade agreement to be concluded, but without a "Yes" from Austria. "The unpleasant thing could be that it is indeed relevant how Austria votes."

Until recently, it was uncertain whether the trade agreement would actually receive the necessary approval. In Europe, among the major countries, France and Poland are critical to dismissive. There are also question marks behind Belgium, the Netherlands, Romania, and Hungary. Due to the still unclear circumstances - a qualified majority is needed in the EU Council - Austria could make the difference in the votes.

Badelt sees clear advantages for Austria through the free trade agreement. He cannot understand the skepticism of the ÖVP Farmers' Association. Looking at the numbers, there is no threat of a flood of beef from Argentina. "I believe that a lot of populism played a role, from which it is then difficult to get out."

Ten Recommendations for Austria as an Industrial Location

Approval of Mercosur is also one of the ten recommendations that the Productivity Council, chaired by Badelt, issued on Wednesday. The expert panel, which examines Austria's competitiveness in goods production, advises the government to specifically promote key technologies with high location potential to actively shape the structural change of the domestic industry. Relevant for the economic location are also the training of skilled workers and a clear plan for the energy transition. Austria should also advocate for a common European industrial policy and advance the EU internal market.

For Finance Minister Markus Marterbauer (SPÖ), the Productivity Council points to a multitude of important measures to achieve improved conditions for increasing productivity and prosperity in the long term. Marterbauer did not address the recommendation to agree to the Mercosur agreement in his statement.

(APA/Red)

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