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Tax reform top of new finance minister’s list

Hans Jörg Schelling of the conservative People's Party (ÖVP), is Austria’s new finance minister. He was formerly the head of the umbrella organization of health insurances (Hauptverband).

Published: 1 September 2014 10:18 CEST
Tax reform top of new finance minister's list
Schelling (L), with ÖVP head Mitterlehner (C), and the Secretary of State for Science and Business Mahrer. Photo: APA/Rubra

The 60-year-old management expert and management consultant is well-qualified for the job, according to observers and fellow party members. As the head of the Hauptverband, Schelling also has a great deal of experience with political debate.

Almost all parties renewed calls on Sunday for the long-promised tax reform. Chancellor Werner Faymann (SPÖ) plans to discuss this as soon as possible with Schelling. "Together we will discuss the major challenges – stable finances, tax relief, economic growth," he said in a statement.

Schelling was born in 1953 in Hohenems in Vorarlberg province (in west Austria). He studied business economics and started his career with the Leiner/Kika furniture company group in 1981.

In 1992, he became the manager of the furniture company XXXLutz. Under his leadership, the company grew to be the biggest furniture retailer in Austria with a turnover of €1.25 billion in 2003. In 2009, the company reached a turnover of €2 billion. Schelling sold his shares and left the company. Insiders estimate he is worth over €100 million.

Between 2007 and 2008 he was an ÖVP MP, and took over as head of the Hauptverband in 2009.

Schelling is married with two daughters.

Former Finance Minister Michael Spindelegger resigned last week after eight months in the role, over differences within the ÖVP over how to overhaul Austria's tax system and reduce its debt. 

President Heinz Fischer is due to swear in the new members of the cabinet. The new leader of the ÖVP, Economics Minister Reinhold Mitterlehner, will be sworn in as vice chancellor. 

On Monday morning, Fischer met with Schelling and the new secretary of state in the finance ministry, Harald Mahrer.

Aside from Mitterlehner, Schelling and Mahrer, members of the SPÖ will also be sworn in.

Minister for Infrastructure, Doris Bures (SPÖ), is taking over as speaker of parliament.

Former health minister Alois Stöger is taking over her post. He will in turn be replaced by trade unionist Sabine Oberhauser.

In addition, the secretary of state in the finance ministry, Sonja Stessl, is moving to the chancellery.

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POLITICS

How can Vienna solve its ‘immigration problems’?

The Austrian capital faces challenges with a high influx of immigrants, primarily people coming through family reunification for refugees' families. What does each major political party believe should be done to tackle the issues?

Published: 10 May 2024 11:57 CEST
How can Vienna solve its 'immigration problems'?

The number of asylum applications has dropped in Austria, but changes in the profile of those arriving are creating new demands and new policies, as The Local has reported. After the first influx of mostly men, their families are following and reaching Austria legally through a family reunification process specific to asylum seekers. 

According to recent data, a significant number of asylum applications in the first quarter of 2024 came from young children. Minors made up a substantial portion, around 53 percent, of total applications. There’s also been a noticeable increase in the number of women seeking asylum.

This influx of children has already had a direct impact on the country. News reports indicate that schools in the primary destination city, Vienna, are struggling to accommodate the new arrivals.

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

The housing market and the healthcare system are also under pressure, Austrian media has reported. What does each major party believe should be done to tackle the issues?

SPÖ and NEOS

The ruling Viennese coalition has already put forth several measures, particularly regarding issues with the education system. In the current academic year, 2,400 teachers have been hired to help schools as new pupils arrive.

Mayor Michael Ludwig (SPÖ) has also been vocal about criticising the federal government’s system for distributing refugees. He asks for an Austria-wide, more equitable policy so that each state takes a “fair share”.

“It is unacceptable for the government to demand a fair distribution among the states at the EU level while failing to meet its obligations at home,” he said.

The liberal party NEOS says that the “primary goal” should be reducing illegal migration at the European level. The pink party proposes that asylum procedures be carried out at the EU’s external borders and that there be a “fair distribution” of asylum seekers within the bloc. 

READ ALSO: What are Austria’s plans to tighten family reunification process?

ÖVP and Greens

Two opposition parties—and partners in the federal government—have also made their stance known. The centre-right party ÖVP criticises “Vienna’s undifferentiated welcome policy,” which it says receives “with open arms” even asylum seekers who are assigned to other provinces in Austria. 

The party wants to make Vienna a less attractive destination for refugees, reducing benefits and increasing the waiting period for refugees to receive some of the monetary assistance they can request. 

The Greens want to focus on integration measures, including quick access to language training and the labour market so that refugees can “make their contribution to this society”. 

Far-right: No social assistance for non-citizens

As you might expect, the far-right FPÖ is the most anti-refugee (and anti-immigration in general) party. 

In an interview with Krone.tv, Freedom Party parliamentary representative Dominik Nepp claimed that “social welfare for non-citizens should be set to zero”.

When asked where to re-home asylum seekers and how to distribute them in Austria, he said, “Where to? To their home countries! We don’t need to distribute them; we need to deport them as quickly as possible”.

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