Hattmannsdorfer Advocates for Europe to Target US Tech Companies

As global economic leaders ponder the implications of potential US tariffs, Austrian Economic Minister Wolfgang Hattmannsdorfer emphasizes the importance of proactive measures. He asserts that a trade war is detrimental to both the United States and Europe, advocating for dialogue as the primary goal.

The specific details and targets of the anticipated US tariffs remain unclear, yet Austria recognizes the significance of its trade relationship with the US, which accounts for 8.5% of its exports--second only to Germany. Hattmannsdorfer highlights the urgency of responding before circumstances escalate.

While the Austrian government plans to define its countermeasures during an extraordinary trade minister council in Luxembourg next Monday, Hattmannsdorfer has outlined an initial strategy. Historically, products emblematic of American identity, often originating from Republican-leaning states, may be prioritized. Items such as Harley-Davidson motorcycles and whiskey are potential targets. However, he argues that this approach is insufficient.

Given the significant role that digital services play for the Trump administration, the EU must also focus on tech giants like Google and Meta. Their influence was notably evident during Trump's inauguration, where executives from these companies were prominently present. Hattmannsdorfer suggests that the EU could impose new taxes on these digital services, leveraging its position as a significant market.

In addition to trade strategies, Hattmannsdorfer emphasizes the need for Europe to explore new export markets and establish free trade agreements to enhance economic resilience.

Energy policy is also on the agenda, transitioning from the formerly green climate ministry back to the economic ministry. The new energy secretary, Elisabeth Zehetner, indicates that public spending on energy and climate initiatives, which has surged to over 12 billion euros in recent years, will be scrutinized. An independent evaluation is planned to assess the effectiveness of these expenditures by summer.

Regarding renewable energy, potential changes could arise in how renewable electricity is fed into the grid during peak loads. A proposed 'peak capping' measure may limit photovoltaic and wind energy contributions to 70% to prevent grid overload. This initiative will require a two-thirds parliamentary majority, likely necessitating support from the Freedom Party, as previously agreed upon during coalition negotiations.

Hattmannsdorfer insists that reducing energy costs is crucial for maintaining Austria's competitive edge, especially compared to the US, where energy prices are substantially lower. Plans for relief on labor costs are also in development, albeit projected for implementation by 2027 and subject to budget constraints. The minister expresses a realistic view of the challenges in fully financing family support funds from the budget by that date, underlining the need for a gradual approach.