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EXPLAINED: Why was Austrian Chancellor Sebastian Kurz forced to resign?

Austria's top diplomat Alexander Schallenberg takes over as chancellor on Monday as the ruling party tries to emerge from a corruption scandal that cost the job of one of Europe's youngest leaders.

Former Austrian Chancellor Sebastian Kurz.
Austria's former Chancellor Sebastian Kurz had defended the benefit cuts. STEFANIE LOOS / AFP

Sebastian Kurz, a 35-year-old once feted as a “whizz kid”, said late Saturday he was quitting the top job after being implicated in a corruption scandal.

Schallenberg, 52, will be sworn in by President Alexander Van der Bellen at 1:00 pm (1100 GMT).

Kurz’s centre-right People’s Party (ÖVP) and their junior Green coalition partners are hoping to move on from the scandal and serve out the rest of their term until 2024.

However, the fallout from last week’s events may continue to reverberate.

On Wednesday prosecutors raided several ÖVP-linked locations, including the chancellory and party headquarters, over allegations that between 2016 and 2018 finance ministry resources were used to finance “partially manipulated opinion polls that served an exclusively party-political interest”.

Prosecutors allege that payments were made to an unnamed media company — widely understood to be the Oesterreich tabloid, which was also raided on Wednesday — in return for publishing these surveys.

The offences were allegedly committed to help Kurz, already a government minister at the beginning of the period in question, take over the leadership of the ÖVP. 

‘Kurz system’

While Kurz initially insisted there was no reason for him to resign — and continues to vehemently protest his innocence — he then reversed course, saying he was putting the country before his own interests.

But many say Kurz bowed to pressure from the Greens and from within his own party. Kurz’s critics point out he will still be head of the ÖVP and will now sit as leader of its bloc in parliament — an ideal position from which to exercise influence as a “shadow chancellor”.

The opposition parties say the “Kurz system” will carry on unhindered through the presence of ministers loyal to him as well as high-ranking employees who look set to continue in post — some of whom are also suspects in the corruption inquiry.

Until now Schallenberg had served as foreign minister under Kurz and is widely seen as being loyal.

The latest scandal to hit Kurz adds to a list of corruption allegations against the ÖVP and several of its prominent figures, including Finance Minister Gernot Bluemel.

Those allegations surfaced in the aftermath of the so-called “Ibiza-gate” affair that in 2019 brought down Kurz’s first government, a coalition between the ÖVP and the far-right Freedom Party (FPOe).

Despite that Kurz came out on top in elections in autumn 2019 and re-entered government, this time at the head of a coalition with the Greens.

Schallenberg’s replacement as Foreign Minister was announced by the ÖVP-controlled ministry on Monday as Michael Linhart, the current Austrian ambassador to France.

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MIGRANT CRISIS

How a change in the profile of asylum seekers is impacting Austria

The number of asylum applications has dropped in Austria, but changes in the profile of those arriving are creating new demands and new policies.

How a change in the profile of asylum seekers is impacting Austria

Asylum policy is a controversial topic in Austria, especially in an election year. The far-right has been pushing its anti-immigration agenda to gather support ahead of federal elections later this year.

While the sheer number of refugees can shape an election, differences in who those refugees are and where they come from also create challenges and demands for government action.

The profile of those seeking asylum in Austria has changed compared to recent years.

In the first quarter of 2024, almost a third of asylum applications came from children between the ages of zero and seven, as Austrian media has reported.

Around 53 percent of applicants are minors, and the proportion of women seeking asylum has also risen significantly. However, the overall number of asylum applications during the period fell by 32 percent compared to the same period the year before. 

Whereas 2023 most asylum applications in Austria were from males (only around 24 percent of applications were submitted by women), the country is now experiencing the “family reunification” phenomenon. In other words the wifes and children are following to seek protection.

Asylum applicants are still mostly from Syria and Afghanistan – two nationalities with a high chance of obtaining protection in Austria. Only 30 percent of applications from Syrians were rejected, whereas for Afghans 39 percent were refused.

READ ALSO: Border centres and ‘safe’ states: The EU’s major asylum changes explained

What does the change in profile mean for Austria?

One immediate consequence of the influx of children has already been seen in Vienna, the destination of most refugees: the school system is overwhelmed with the new arrivals, as several Austrian newspapers have reported in the last few weeks.

“This is putting such a strain on the system that high-quality teaching is hardly possible any more,” Thomas Krebs, a union representative, told Kurier. According to the report, around 300 children will arrive in Vienna every month, resulting in a need for 140 classes by the end of the school year. 

The Austrian capital was already overwhelmed by a shortage of teachers and an overflow of schoolchildren—particularly since the war in Ukraine, when 4,000 children were integrated into Vienna’s schools from February 2022.

The kids coming from Syria also need more support than merely German classes: “The Syrian children who come to us from refugee camps are a particular challenge for the system. Many are traumatised and often not even literate in their own language,” Krebs said.

He added that children need to spend more time in kindergarten—to learn “the basics, not just the language.” The education expert also believes it’s necessary to invest more in extracurricular activities, where young people can learn German, acquire behavioural skills that are important for school, and learn how to spend their free time meaningfully.

READ ALSO: What’s the reason behind the drop in Austrian asylum seeker claims?

What is Vienna doing?

Vienna’s Department of Education points out that new teachers are being recruited. In the current academic year, 2,400 teachers have been hired, Kurier reported.

Director of Education Heinrich Himmer said: “We support pupils and face the challenges together so that learning and living together work well. I would like to thank everyone who works so hard in Vienna’s schools. However, the responsibility for integration is an all-Austrian one, where solutions exist at the federal level.”

How does family reunification work?

There is a special process for granting family reunification rights for family members of refugees in Austria. 

According to information from the Federal Office for Immigration and Asylum, if a foreigner has been granted asylum status in Austria, family members can apply for an entry permit at an Austrian representation authority abroad within three months of this status being granted.

If this is granted, they can travel to Austria to apply for asylum in the family procedure and receive the same protection status as the reference person. If the application is only submitted after three months, they must also provide proof of adequate accommodation, health insurance, and income.

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