End of Climate Bonus and Educational Leave: The Austerity Measures of FPÖ and ÖVP in Detail

The blue-black coalition negotiators presented details of their consolidation package on Thursday, with which they want to save around 6.4 billion this year and thus avoid an EU deficit procedure. The climate bonus and educational leave are to be abolished. The valorisation of federal fees, which have not been increased since 2011, is to be made up for. In plain language, this means that, for example, registration certificates, passports and driving licenses will become significantly more expensive.

No More Free Climate Ticket for 18-Year-Olds

Partially state-owned companies should also contribute. At least an additional 430 million is expected from dividends. 120 million is expected from reallocations in the ÖBB framework plan, which will probably result in project delays. Furthermore, for the FPÖ, former Finance State Secretary Hubert Fuchs and for the People's Party parliamentary group leader August Wöginger announced a reduction in environmental subsidies by 20 percent. This would still leave two billion in the subsidy pots, argued the faction leader of the ÖVP.

The free climate ticket for 18-year-olds is to be abolished, which would bring in 120 million. According to the plans, a motor-related insurance tax for electric vehicles will be established. The promotion for boiler exchange will be significantly reduced.

Mileage Allowance for Cars Remains the Same

Elsewhere, subsidies in the environmental sector are to be "smoothed to a normal level", as Wöginger called it. This includes that the (zero) tax privilege for the procurement of photovoltaic modules should fall prematurely and not only at the end of the year. This is the largest chunk in the tax area with 175 million. The "location contribution" of the electricity industry should bring in at least 100 million. This refers to an extension of the energy crisis contribution.

The mileage allowance for motorcycles is to be halved to 25 cents according to the negotiators' ideas, that for bicycles quartered to 12 cents. For cars, the full amount would "of course" remain, as Fuchs emphasized.

Expansion of Digital Tax, Tobacco Tax Also Included in the Austerity Package

The digital tax is to be expanded. It should also include the provision of online platforms and the sale of user data. In the case of the real estate transfer tax, there should be a closing of the gap in share deals. If the buyer does not directly acquire the property, but a company that owns the property, a reduced tax rate applies so far. 520 million should come from the underutilization of measures such as the craftsman bonus and the investment premium.

Additional revenue is expected in the gambling sector, where a ten percent higher volume is hoped for, which according to Fuchs corresponds to 35 million. It is not yet clear where this will be applied. The tobacco tax is expected to freeze the price component. In addition, "heating tobacco" is to be included in the tax.

Additional Earnings to Unemployment Benefit Ceases

According to Wöginger, the possibility of additional earnings to unemployment benefit or emergency aid is to be more or less abolished. However, the suspension of the annual valorisation of social benefits is not an issue for this year, according to the ÖVP club leader. This matter was part of the negotiations with SPÖ and NEOS. The same applies to the rumoured lower revaluation in the pension account. These measures are "not correct as such" and were not part of the discussions with the FPÖ.

However, they do want to turn screws to increase the actual retirement age. Among other things, Wöginger is also considering a partial pension, with which one could work beyond the retirement age, but at the same time could earn a part of the rest allowance. Overall, savings of 150 million euros are expected in the pension sector.

Ministries Face Severe Cost-Cutting Measures

According to the blue-black plans, the ministries would have to save a lot. The departments are expected to contribute 1.1 billion at their own discretion, which is likely to account for about 15 percent of the expenditure. Fuchs presented proposals on where the ministries should start, especially with advertisements, contracts for work and in the ministerial cabinets.

The FPÖ politician was keen to explain to his own followers why the measures are necessary: "The mountain of debt has forced us to embark on this path of consolidation, so that we can create freedom for Austria to have a good future." Otherwise, foreign determination by Brussels would have threatened. In addition, new taxes and pension cuts would have been on the table with a further debt course, which could have triggered social unrest.

The Freedom Party MP then also assured that the FPÖ would keep its election promises. What has changed is only the timeline for this. In addition, new taxes have been avoided and 86 percent of the volume of measures is not on the revenue side.

Environmental Organisations React Outraged to Austerity Package

Environmental protection organisations have reacted with outrage to the austerity plans of the blue-black coalition negotiators. The WWF rated the announced cuts in climate protection measures as "negligent and counterproductive". According to Greenpeace, high penalties are threatened for failed climate protection and for Global 2000 it is a "completely thoughtless clear-cutting".

Global 2000 rejects, among other things, the announced end of the heating exchange program for energy-poor households. Greenpeace points out that such measures keep people dependent on oil and gas. The government wants to make climate-friendly behaviour more difficult instead of easier, stated the WWF. The Federal Association Photovoltaic Austria warned in an open letter of a higher value-added tax on PV systems. At ÖAMTC, there was a desire for a "significant increase in electromobility in combination with more ambitious goals in the blending of alternative fuels".

Gewessler with Sharp Criticism: "Dangerous Plans"

Climate Protection Minister Leonore Gewessler (Greens) was predictably unhappy with the plans. "The cutback plans for climate protection measures are ideologically driven and dangerous. Everything that protects the climate and secures our future is to become more expensive according to the will of the FPÖ and ÖVP," she said in a statement. The climate ticket has revolutionised public transport. Instead of strengthening it, "it is being deliberately weakened," criticised Gewessler. Similarly, Green Party leader Werner Kogler on "ZiB2". He identified "really stupid cutbacks" that will choke off the economy. "Oil lobbyists, gas agents and concrete barons" would have reason to rejoice, on the other hand.

"FPÖ and ÖVP rely on mass taxes, such as the abolition of the climate bonus," complained SPÖ budget spokesman Jan Krainer in a statement. The "biggest crisis profiteers like the banks" would not contribute. "The main burden of consolidation is placed by Kickl and Stocker on the shoulders of the working population." The Burgenland governor Hans Peter Doskozil (SPÖ), who had spoken out against a government participation of his party at the federal level, saw in the austerity package a "slap in the face of families and workers". The abolition of the climate bonus is an "indirect tax increase, which can burden Burgenland workers and families with over 1,000 euros annually" due to the still existing CO2 tax.

The NEOS missed a long-term perspective. "A one-time lawnmower does not yet put the state budget back on healthy feet. And cutting alone is not yet a reform," said budget spokeswoman Karin Doppelbauer. But she also found positive points: "NEOS welcome the ambition to prevent an EU deficit procedure with short-term measures." The KPÖ identified new tax burdens. Blue-Black would "continue to sack the population, but cut the compensation payments," said federal spokesman Tobias Schweiger.

The Burgenland SPÖ is also outraged. Club chairman Roland Fürst is bothered that while the climate bonus is to be abolished, the CO2 tax remains. This burdens an average Burgenland household with around 1,000 euros.

End of Climate Bonus is Right Basic Idea for Wifo Chief

The globalisation-critical organisation Attac also sees this measure as a de facto tax increase for everyone. The abolition of the possibility to earn additional income with unemployment benefit up to the marginal earnings limit is particularly considered as unsocial. The trade union-related Momentum Institute emphasised that the austerity package does not include a significant contribution from companies or the rich. The party-independent Kontext Institute spoke of setbacks in climate protection. The economically liberal Agenda Austria saw some steps in the right direction.

The union criticised the budget plans. The abolition of the climate bonus is in reality a tax increase, said ÖGB Federal Managing Director Helene Schuberth in a statement. "There is nothing in it that secures jobs," she also complained. Approval, on the other hand, came from the Chamber of Commerce. Wifo chief Gabriel Felbermayr described the plans on ORF as "incisive". He expects adjustments to the climate bonus, the basic idea of which was correct.

(APA/Red)

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