Support for positive development in Styria

Barbara Eibinger-Miedl, Regional Councillor for Economic Affairs, and Doris Kampus, Regional Councillor for Social Affairs, on the stimulus measures and projects.

The Styrian economy is once again on a growth course in many sectors and the situation on the local employment market has also been developing in a positive trend since spring. Nevertheless, the social crisis still needs to be actively tackled, Styrian policy-makers say. With targeted measures for Styrian businesses as well as employees, the Department for Labour and Economic Affairs wants to support this upward trend accordingly over the coming months.

“The Covid-pandemic and its consequences are the greatest test for the local economy and the employment market for the last decades. However, there are currently encouraging signs. Numerous businesses are once again on the path to success and also the number of people unemployed is declining. Over the coming months, we will be concentrating on supporting this positive trend with stimulus measures as well as a specially targeted skilled labour programme,” agree Barbara Eibinger-Miedl, Regional Councillor for Economic Affairs, and Doris Kampus, Regional Councillor for Social Affairs.

Supporting investments

A key prerequisite for an economic comeback in Styria is investments in local businesses. They have been on a consistent high level for many months. The Styrian Economic Promotion Agency SFG currently processes around 150 projects with a total investment volume of around 240 million euros. In the tourism industry, businesses are also continuing to show a high willingness to invest. Currently, another 150 projects with an investment volume of 120 million euros are being processed. “We will continue to assist the investing companies with targeted support measures as their projects are the key for the way out of the crisis caused by the pandemic,” says Eibinger-Miedl.

Significant areas of focus will be investments in the fields of green technologies, sustainability and digitisation. In addition, Eibinger-Miedl wants to further improve the framework conditions for entrepreneurial investments. “I want to turn Styria into the federal province with the most investment-friendly climate. The establishment of a service point for procedural aid at the economic affairs department is an important step. With this service, investors in large projects have a central contact person who can provide support with all necessary official permits.

“Funds from the recovery plan of the European Union (REACT-EU) make a significant contribution towards supporting investments. “For Styria, there are 29.2 million euros available this year, which can be used to support research and development, innovation, digitisation as well as climate protection meas-

© Peter Drechsler

Barbara Eibinger-Miedl, Regional Councillor for Economic Affairs, and Doris Kampus, Regional Councillor for Social Affairs, want to support the economic recovery with specific measures.

ures. These funds are a key element in our stimulus package over the coming months,” explains Eibinger-Miedl.

New crisis task force for the labour market

“Despite the good news, we need to accept that in terms of our society we have not yet overcome Covid and its effects at all,” underlined Doris Kampus, Regional Councillor for Social Affairs. In May 2021, more than 14,000 people in Styria were classed as long-term unemployed, this is 50 percent more than in May 2019 before the Covid-19 pandemic.

In order to be able to tackle the challenges on the employment market more efficiently, the social affairs department has set up a new crisis task force. “The Steirische Arbeitsförderungsgesellschaft (STAF) encompasses all of our existing and future activities in this area,“ added Kampus. “This is the biggest reform in this area for decades.” With 20 million euros from regional funds, the job centre and company contributions, STAF has a decent starting capital available. STAF will coordinate existing foundations such as the care foundation and the climate foundation, and will process new ones directly.

A digitisation foundation with 200 training positions has coffers of 1.5 million euros. This should help solve the acute shortage of skilled staff. Completely new is the regional foundation for small and medium-sized enterprises, which form the backbone of the Styrian economy. “Up until now we had foundations for sectors such as the automotive foundation or the ATB-Stiftung for individual companies. The SME foundation is something completely new,” underlined Kampus. “Employees from other sectors and from all over Styria participate in a vocational orientation and then take a qualification in their desired profession. “Between 4,000 and 5,000 people will be able to get started in an employment initiative from the social affairs department. “That means concrete help for 5,000 affected people and their families,” Kampus adds. “With the new crisis task force STAF, the new and existing foundations and with the solid budget, we are well-prepared to create jobs for people in Styria. We all know that it is better to prevent unemployment than to just provide financial assistance.”

Boosting the restart of exports

A measure, which is being implemented with funds from the REACT-EU programme, is an export initiative. As a result of the Covid-19 pandemic and its effects, the Province of Styria, which is an export-orientated province, noted a significant drop in foreign trade. After the record-breaking year 2019, goods exports dropped by more than a fifth in the first half of 2020, which was considerably more than the Austrian average. “Every second

Styrian job is secured by foreign trade, thus contributing significantly to the prosperity in our province. We have to ensure that these companies are able to re-establish their export successes from before the pandemic as soon as possible, and at the same time initiate further international business relationships as well as explore new markets,” stresses Barbara Eibinger-Miedl on the importance of the Styrian foreign trade.

The objectives of Restart Export are to get Styrian companies back on the export market as soon as possible and to protect them from possible future export losses caused by economic crises. In order to achieve this, three main focal points were defined. One focus is on supporting businesses with market entry or the expansion of existing markets. A further focal point is the extreme importance of efficient supply chain management; the need for this came to the forefront due to the Covid pandemic. In order to be able to react quicker to disruptions and disturbances, Styrian companies are to be equipped with useful tools, practice-relevant strategies and expert knowledge on supply chain and risk management. The third main focal point is digitisation, which has enabled new dynamics in international business. Addressing customers in person has increasingly been replaced by digital solutions. Within the framework of Restart Export, businesses are being supported in strengthening international market cultivation and customer loyalty by using digital tools.

Pushing further ahead with Innovative Business Start-ups

“There is a great potential for new jobs in the Styrian start-up scene, which has developed dynamically over the last few years,” says Eibinger-Miedl. That is why the economic affairs department will focus in the coming years particularly on pushing ahead with innovative business start-ups.

The existing funding and promotion programmes offered by the SFG are being expanded upon, and a new support programme for start-ups is about to be launched. In order to support more start-ups in scientific areas, infrastructure is being put in place. Following the opening of the Unicorn Impulse Centre at the Karl Franzens University in Graz, the Data House at the Graz University of Technology, which is currently under construction, and the ZWT2 (Centre for Knowledge and Technology Transfer in Medicine) at the Graz University of Medicine are entering the next stages. The SFG Impulse Centres in Niklasdorf and Lebring are also being expanded. The “Startupmark” which is located next to the SFG, should allow all domestic players from the startup sector to network and thus increase the international visibility of the province of Styria.

Accelerated broadband expansion is a priority in Styria

Styria increased its efforts considerably with regards to the expansion of broadband over the past few years. Now, all 286 Styrian municipalities have access to a fibre optics access point, which is the basis for all connections. Nevertheless, as the Covid pandemic has triggered an additional rapid increase in digitisation in business, science and education, Regional Councillor Barbara Eibinger-Miedl believes that the efforts to further expand broadband availability in Styria must be intensified.

“We have to increase the speed of further fibre optics expansion considerably. As a result of the Covid pandemic, the demand from companies, research and education facilities, municipalities and private households for a powerful data network increased significantly in the space of a few months. We have to take account of this increased demand and expand the infrastructure as fast as we can,” says Eibinger-Miedl. Funding from the federal government plays a key role in the further expansion of broadband, which as a result of further pressure from Governor Hermann Schützenhöfer has helped secure a further 1.4 billion euros for the whole of Austria. Currently being discussed between the federal government, the provinces and the municipalities, is the funding guidelines for the allocation of these funds. “The speed

© TeresaRothandl

The Styrian broadband initiative aims for high-speed internet in Styria. From Dachstein in the West through to Bad-Radkersburg in the South-East, as far as the eye can see.

of the broadband expansion will also depend on how these guidelines are organised. We are advocating for the funds allocated to Styria to be quickly and unbureaucratically put into use in specific expansion projects,” emphasized Eibinger-Miedl.

“The Covid pandemic has shown us how important a high-performance internet connection is for all regions of Styria. As the Regional Councillor for Social Affairs, who is also responsible for employment, I can see both in the medium and long term a lot of employment potential, when the Styria is equipped with broadband internet – from Dachstein right through to Bad Radkersburg,” stresses Doris Kampus.

Fibre optics access points in all Styrian municipalities

The supply of fast internet in Styria was considerably increased by the Styrian broadband and digital infrastructure company Sbidi, which was established in 2018 by Eibinger-Miedl. Today, all 286 Styrian municipalities have access to a fibre optics access point, this is the basis for further connections. There are currently 17 expansion projects by Sbidi with an investment volume of 107 million euros being implemented in Styrian municipalities. This expansion is taking place in cooperation with regional companies. In addition, there are further projects by Energie Steiermark as well as other private providers. Sbidi is enabling expansion in rural areas, thus ensuring progress where there is the most need to catch up. This is currently restricted to those regions known as “white areas”, which are not served by private operators. In the future, the focus of Sbidi will be adapted in order to speed-up the expansion of broadband.

Coordinated approach with PIA 2030

As part of the “Internet Infrastructure Platform Austria 2030” (PIA), instigated by Federal Minister for Economic Affairs, Elisabeth Köstinger, all broadband activities by public and private actors are being coordinated. “The further expansion will only succeed if all those involved are actively committed to it and we are able to offer a coordinated approach,” says Eibinger-Miedl. She also regards PIA as a significant step towards an accelerated expansion of the internet infrastructure.

Eibinger-Miedl is also aware that the province of Styria will have to make an adequate contribution. Over the past few years, special funds were allocated specifically for the expansion of broadband expansion.

If Eibinger-Miedl has her way, it will remain that way and further rural regions will have high-speed internet very quickly. “This is essential to keep companies and jobs in the regions and to offer people in these regions future prospects,” she says. ◆