“Business yes, but” – Army: out for billions in Hinterzimmern

The Austrian economy has been in an overview for three years – it takes far too long that the economic engine starts. If you listen to the economy, many entrepreneurs criticize that Austria will invest many billions in the armament of the federal army in the coming years – but have apart from obtaining a technology share for the business location. The entrepreneurs feel this course “embarrassing” in terms of industrial policy.

In the word against transactions, however, fear sweat breaks out for every politician. In order not to fall into the same fall as with the purchase of Eurofighter, this week it was investigated in a task force to what extent industrial cooperation in armament is permitted. In addition to the Ministry of Economic Affairs and Defense, the Industrial Association and Chamber of Commerce are also on board.

Wolfgang Peschorn, chairman of the Financial Procurature, is intended to throw away the legal framework. Financial practice, who launched the Eurofighter Display on behalf of the then Minister of Defense Hans Peter Doskozil and made proposals for a transparent and cheap purchase of armament, is based on the legal requirements. “My suggestions and considerations at that time, which are further accessible via the internet of the general public, determine our Marchroute”.

It is incomprehensible to him why the interests of the economy are not rewarded that the Austrian economy is already benefiting from the purchase of the federal army: the revitalization of military vehicles has already been added to an important added value by Austrian employees.

Peschorn: “Cooperations only allowed within narrow limits”
In the “Krone” interview, Peschorn has the framework for industrial cooperation. This requires “essential security interests, clear criteria and complete transparency”. The circumstances under industrial cooperation take place in individual cases in individual cases, must be determined by the “Republic of Austria and the responsible bodies themselves,” says Peschorn.

Very important: neither the “Chamber of Commerce nor the industrial association, whose task is primarily to maintain the interests of its club members, can determine this,” emphasizes Peschorn. Teller transactions – “Industrial cooperation in the purchases of armament – are only permitted within narrow limits”.

Turbines yes, car no
The legal situation is clear: according to the law of the European Union, counter transactions may only be completed if they serve directly for a considerable safety interest in Austria. “A turbine for an airplane, spare parts for a tank such as the armored chain, to a small part that is especially important for the company, could hear – leisure clothing, seats or civil cars,” said Peschorn.

This is exactly where Minister of Economy Wolfgang Hattmannsdorfer wants to start: “The safety and defense industry is an important pillar in the domestic economy and has 11,000 direct employees, 20,000 employees in their supplier company and generates an annual turnover of 3.3 billion euros”. However, the past has shown that “against transactions were often abused as a hidden economic development of individual companies on the occasion of the purchase of a armament and not only lobbyists benefited personally due to unfair things”.

The Eurofighter purchase is the best known example. The result: the taxpayer has indirectly finance expensive and sometimes criminal structures via the purchase price, without a real safety -relevant added value that would result from these against transactions. “Everyone can take a picture of the sustainable positive effects that counter-transactions had on the Austrian industry when buying the Eurofighter”.

Clarity through strategy and legal certainty
Peschorn therefore states that on the basis of the Austrian defense and security strategy, in which it is defined, “which equipment is needed to ensure the safety of Austria, can be derived from the decision makers who must be manufactured or repaired in Austriage in Austria.

Moreover, the financial authorization recommends that the considerations of Austria for industrial cooperation must be clarified at an early stage before an implementation of the EU committee.

Public tenders instead of rear tires
The dangers realized by the non -transparent against -transparent past transparent past, can “be found most effectively by public tenders,” said Peschorn. In such a tender, the purchasing of the goodness of the armament can also be legally permitted when fulfilling the armament – such as production locations, technological requirements, supply chains and further measures to guarantee the security of delivery. This can be an important amount of effective national defense.

“So it would be likely that the costs for industrial cooperation are not finally borne by the taxpayer at an increased purchase price, but by the company from which the armament is obtained.” Peschorn emphasizes that “it is important that tax money is not only legally permitted, but is also used efficiently”. To do this, it must also be ensured that the purchase price for the arms material is suitable.

183.4 million committees at the Eurofighter -deal
The Eurofighter deal was seen that the counter-transactions and committees for the lobbyists were financed by the Republic by the purchase price of 183.4 million euros and therefore by increasing tax money. “This brought some people an unfair advantage, but did not contribute to the certainty of Austria.” His conclusion: “Opposite transactions are not in itself a goal and not in an instrument of business development, but only permitted and sensible, insofar as they serve the essential safety interests of Austria.”