Made in Europe: The Federal Government and State-Owned Enterprises Join Forces to Strengthen Austria as a Business Hub

14 October 2026 Made in Europe: The Federal Government and State-Owned Enterprises Join Forces to Strengthen Austria as a Business Hub Joint Declaration for Greater European Value Creation in Public Procurement - 67 Billion Euros in Annual Procurement Volume as a Lever for Industry, Jobs, and Security of Supply

photo: BKA / Florian Schroetter

The Austrian federal government is taking the next step toward implementing its industrial strategy: By jointly signing the "Made in Europe Declaration," the German federal government and leading state-affiliated companies are committing to placing greater emphasis on European value creation in public investment and procurement in the future, within the framework of the respective sector-specific legal and economic requirements and opportunities.

The goal is to strengthen domestic and European production, secure jobs, and reduce strategic dependencies. The initiative is part of the consistent implementation of the industrial strategy, more than 40 percent of whose measures have already been implemented or are currently being implemented.

"Europe must confidently leverage its economic strengths and ensure that public investment also benefits our own industry and our jobs," emphasizes Federal Chancellor Christian Stocker.

With the "Made in Europe" Declaration, we are joining forces with state-owned enterprises to send a clear message in support of a strong, competitive, and independent business location.

67 billion euros in public procurement as a lever for the business location

In Austria alone, approximately 67 billion euros are spent annually on public procurement. About 50 percent of this volume is accounted for by federal government-affiliated companies, with another 22 percent coming from state-affiliated companies. This means that public contracting authorities and affiliated companies-many of which are sector-specific contracting authorities-have significant economic leverage to more effectively link investments with European value creation, innovation, and employment.

A study by the Supply Chain Intelligence Institute Austria (ASCII) illustrates the extent of this potential: Just 0.6 percent of all public contracts account for 50 percent of the total procurement volume. In the future, therefore, particularly for large procurements, factors such as quality, lifecycle costs, innovation, and security of supply should be given even greater consideration alongside the purchase price.

"Our tax dollars should create jobs in Europe, not new dependencies abroad-with 67 billion euros in public procurement annually, we have tremendous leverage to achieve this," explains Minister of Economic Affairs Wolfgang Hattmannsdorfer.

With today's declaration, we are taking the next logical step in the industrial strategy together with state-owned enterprises: more domestic production, more European value creation, and secure jobs.

Federal Infrastructure Companies as Strong Partners

Federal infrastructure companies also play an important role. Companies such as ÖBB, ASFINAG, and viadonau provide significant economic stimulus through their investments in rail, road, and waterway infrastructure and award contracts across numerous industrial value chains.

Procurement under the responsibility of the Federal Ministry of Innovation, Mobility, and Infrastructure (BMIMI) therefore offers considerable potential to strengthen European value creation, innovative technologies, and efficient supply chains. Within the framework of the applicable public procurement laws and sector-specific requirements, quality, long-term cost-effectiveness, and security of supply should be given even greater consideration in these investments.

"Our public infrastructure investments are not only a driving force behind modern mobility and security of supply, but also a major source of business for the domestic economy. With 'Made in Europe,' we aim to leverage these investments even more effectively to secure European value creation, innovation, and jobs in the long term, as well as to strengthen the economy's independence and resilience," explains Infrastructure Minister Peter Hanke.

The Austrian Federal Railways (ÖBB) also see their investments as an opportunity to strengthen Austria's position as a business hub.

"As one of Austria's largest public contracting authorities, ÖBB continuously invests in a modern and efficient rail infrastructure. Quality, innovation, and long-term cost-effectiveness are crucial here-and so are the opportunities to use our investments to boost value creation and jobs in Austria and Europe," says ÖBB CEO Andreas Matthä.

State-Owned Enterprises Commit to "Made in Europe"

With this declaration, state-affiliated enterprises reaffirm their commitment to strengthening "Made in Europe." They pledge to give greater consideration to European value creation in their procurement decisions, within the limits of legal and economic feasibility. The aim is for public investments not only to build infrastructure but also to contribute to strengthening Austria and Europe as business locations.

Verbund also emphasizes the importance of strategic investments for the region and for security of supply.

"The expansion of our energy infrastructure is a key investment in the future of Austria as a business location and in the country's security of supply. Where economically and legally feasible, we also aim to use our investments to strengthen European technologies, industrial value creation, and efficient supply chains," explains Verbund CEO Michael Strugl.

The declaration represents another step toward implementing the industrial strategy and builds on the "Made in Europe and Partner Countries" initiative presented this summer. In the future, this principle is to be more firmly embedded in public funding and procurement policies. The goal is not to isolate Europe, but to ensure a level playing field and a more strategic use of public funds.

Four Measures for Greater European Value Creation

To this end, the Federal Government is pursuing four key areas of action:

Strategically Aligning Public Procurement

"Made in Europe" should be strengthened as a guiding principle for public contracting authorities and state-affiliated companies within the framework of their respective sector-specific procurement regimes. An action plan for strategic public procurement is intended to contribute to this.

Using Funding Policy as a Location-Attraction Tool

Public funding should be used to a greater extent to support research and production capacities in Austria and Europe. Initial steps have been taken with the European bonus for photovoltaic funding and subsidies for pilot plants in key technologies.

Further developing procurement law

Public contracts should give greater consideration to quality, life-cycle costs, and economic sustainability. The goal is also to establish a requirement to justify non-European procurements.

Leveraging Europe's market power

Clear rules against dumping and unfair subsidies, effective investment controls, and a procurement framework that strengthens European value creation are intended to ensure a level playing field.

State Secretary Sepp Schellhorn emphasizes the importance of an economically balanced implementation: "Strategic procurement must focus on quality, cost-effectiveness, and long-term benefits, rather than looking exclusively at the lowest price. It is crucial that we strengthen European value creation without creating new bureaucratic hurdles for companies and public contracting authorities."