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AUSTRIAN OF THE WEEK

POLITICS

Spindelegger: Defeated by tax reform

Former Finance Minister Michael Spindelegger resigned on Tuesday after eight months in the role, over differences within the conservative People’s Party (ÖVP) over how to overhaul Austria's tax system and reduce its debt. What will his legacy be?

Spindelegger: Defeated by tax reform
Michael Spindelegger. Photo: APA/Schlager

Spindelegger also stepped down as Austria's vice chancellor and head of the ÖVP, the junior partner in Austria’s governing coalition.

At a surprise news conference, Spindelegger said he resigned due to a lack of support from his own party. "When there is no cohesion, it is time to hand over the reins," he told reporters.

Some ÖVP members have backed calls for tax cuts from its coalition partner, the centre-left Social Democrats.

Instead of cutting taxes, Austria should focus on cutting its debt, which is expected to reach about 80% of gross domestic product this year, Spindelegger said.

"The Austrian way must be oriented toward Berlin and not toward Athens," he said.

However, Gerald John of Der Standard newspaper writes that what Spindelegger didn’t understand is that no one wants to hear about the looming menace of national debt, and the need for savings and belt-tightening – what they want to hear is when their income tax is going to be reduced.

Tax reform was Spindelegger's stumbling block, and the issue that made him so unpopular, writes John.  

For many within the coalition a tax cut is seen as a way to woo voters and ensure success in the next elections (2018), as well as a way to boost the economy by giving workers more spending power.

But Spindelegger always maintained that this was the wrong approach.

"New debts are irresponsible towards the next generation, and I don’t want to be a part of that," he said in his parting words.

The Social Democrats want to introduce taxes on inheritance and a "millionaires tax" on the super rich – an idea Spindelegger rejected as a "drop in the ocean".

He had been a target of criticism from within his own party even before the debate over taxes. He has been a "dead man walking for many months," said political commentator Peter Plaikner.

Voters expect politicians to solve problems, not to give constant warnings that everything is going down the drain. A senior ÖVP figure referred to Spindelegger as a “Cassandra” – but only time will tell if he was actually the voice of reason.

Spindelegger was criticized for his inability to assert his policies and for some of his cabinet choices when building the government. He was viewed by some as too conservative even for the centre-right ÖVP.

With his wife, Margit. Photo: APA/Hochmuth

Many politicians from both sides of the government were surprised by Spindelegger's resignation, but seemed certain that the coalition would be able to overcome the loss of one of its party's leaders.

The day after his resignation Spindelegger had an “impromptu interview” with a sports editor in the changing room of a well-known Vienna fitness club. The 54-year-old was described as “looking 15 years younger” and “beaming”.

"It's also about having some dignity in life, I feel wonderful," Spindelegger said. His immediate plan was to clear his office and fly to Luxembourg, where his wife works – and after that – no long term plans as yet.  

Good luck to his successor as ÖVP chairman, Reinhold Mitterlehner. Germany's Süddeutsche Zeitung commented that whoever takes over the ÖVP “is on a suicide mission and will die a quick political death.”

Editor's Note: The Local's Austrian of the Week is someone in the news who – for good or ill – has revealed something interesting about the country. Being selected as Austrian of the Week is not necessarily an endorsement.

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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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