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OPINION AND ANALYSIS

ANALYSIS: Is Vienna in good hands with ‘crisis manager’ mayor Ludwig?

No Austrian politician has become more disputed and exposed to the public than Michael Ludwig, the mayor of Vienna. But as his political opponents grow could the city's so-called "crisis manager" yet come out on top?

austria Michael Ludwig Vienna mayor
Vienna Mayor Michael Ludwig (C) speaks during the opening of a mobile flu vaccination station "Impfbim" located in a tram in Vienna, Austria, on October 1, 2020. (Photo by JOE KLAMAR / AFP)

‘Pandemic not over’

“Once again I’d like to stress that the pandemic isn’t over,” Michael Ludwig tweeted in September 2021. “The pandemic is not over yet. We are staying on the safe side,” he posted end of May 2022. Like a mantra the city governor would also repeat this statement at the SPÖ Vienna State Party Conference on 28 May 2022, where Ludwig was confirmed as the capital’s federal leader with 94.4% of all delegates.

His most fervent supporters – close party members and Austria’s SPÖ chief Pamela Rendi-Wagner, a trained epidemiologist – keep applauding what Ludwig in his own words calls “the Viennese way”: a path that is supposed to be totally different from the national approach in dealing with the COVID-19 pandemic and its aftermath. And a path that has involved much stricter measures than in the rest of Austria and Europe: mandatory PCR tests at public outdoor pools for six-year-olds, for instance, or guest registration and “2G” restrictions (only admission to vaccinated persons and those who have recovered from a COVID infection) in Viennese hotels and restaurants.

READ ALSO: ‘The pandemic is not over’: Vienna keeps mask rule in public transport

All these measures were strongly criticised by some economic representatives and ÖVP politicians in particular. They have now been lifted, although FFP2 face masks still need to be used on all public transport in Vienna. Such measures still outrage an increasing number of social media users who blame Ludwig for keeping the health crisis alive to consolidate his power.

In an interview, former Minister of Tourism Elisabeth Köstinger accused the Viennese government of harming Austria’s hospitality and tourism sectors in the long run with its strict Corona policy. Indeed, the capital was hit much more badly than the other eight provinces, with almost 57% fewer hotel bookings than in 2019. Köstinger also questioned the efficiency of Vienna’s testing strategy in relation to high infection numbers.

But what do the Austrians think of Michael Ludwig, who ranges among the ÖVP-Green government’s toughest opponents? According to a survey by the Linz Market Institute, Vienna’s mayor would have been re-elected by more than 50%. This survey, however, was carried out beginning of 2022, before a series of scandals and crises started to tarnish Ludwig’s reputation as a trustworthy “crisis manager”.

An image made of concrete

Just a few days after the poll was published, activists revealed a monument in front of Vienna’s city hall: a concrete image of Michael Ludwig as a clear sign of protest against his climate and environmental policy. Protesters (many of them from the “Fridays for Future” movement and Greenpeace) turned out in force as the mayor insisted on building a highway and a tunnel that was supposed to cross the Lobau, a nature reserve at the Danube. Ludwig remained unimpressed. Like in the Corona crisis, the governor wants to rely on his own team of experts, emphasising that there are no feasible alternatives. Meanwhile, parts of the SPÖ’s base are openly opposing the governor’s hardline policy.

In social media, the number of Ludwig’s critics currently far exceeds his supporters and those in favour of his cautious and considerate “Viennese way”. With the ongoing war in Ukraine and an alarming inflation in Austria, this trend doesn’t seem to be reversed.

Many Austrians have started to wonder why the SPÖ was calling for national incentives to reduce rising costs of living while Vienna’s governor hadn’t offered solutions to bring down rising electricity, heating and housing expenses. One poster in the “Standard” forum also asks why the mayor, who “couldn’t be fast enough to give a press conference right after the federal government had finished their consultations,” was then making himself scarce. Only this week did Ludwig announce any measures to counter rising energy costs.

Is Ludwig able to manage future crises?

In the Austrian capital, the Social Democrats are still perceived as an open-minded and social party standing up for equal rights and opportunities. Members of ethnic minorities and the LGTBQ community feel safe with the SPÖ-run city government. This perception hasn’t changed since Michael Ludwig came into office in May 2018. However, some may now disagree after the governor’s friendly meeting with Turkey’s disputed President Recep Tayyip Erdogan in Istanbul this month.

The Austrian daily “Der Standard” called the consultation a “diplomatic dilemma”, while the reactions of the Kurdish minority and online posters were far less diplomatic. “Is he just overestimating himself by giving cynical, somewhat provincial signals to potential AKP (Erdogan) voters in Vienna, or is it something else?” sociologist Kenan Güngör wonders. One poster suspects that Ludwig’s main motivations for this trip were to gain Austro-Turkish voters, outperform Chancellor Karl Nehammer (who visited Russian President Putin) and prepare himself for leading the federal SPÖ one day.

READ ALSO: EXPLAINED: How Austria’s new finance measures could benefit you

With the rising inflation, many Austrians have lost faith in politicians who keep struggling to find efficient solutions against increasing prices and living expenses.

Soon after the federal government announced “climate bonus” payouts of up to 500 Euros per household this year, Michael Ludwig finally also promised an “energy bonus” of 200 Euros for more than 650,000 Viennese households. Will this suffice to calm an array of opponents and voters who have already turned their backs on the SPÖ?

It may, in the end, depend on the solutions Ludwig and his party are going to offer and communicate to the public. One thing is for sure though: The rhetoric of a permanent state of crisis alone isn’t going to be enough anymore.

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RENTING

‘Betriebskosten’: What are the extra costs renters must pay in Austria?

Renting an apartment in Austria means you’ll have to budget not only for the rent, but other somewhat hidden monthly costs and expenses.

'Betriebskosten': What are the extra costs renters must pay in Austria?

Understanding operating costs or the specific expenses landlords or property agencies charge renters, is crucial for staying on top of your monthly payments when renting a place in Austria. These extra costs, known in German as Betriebskosten, are strictly regulated by Austria’s Tenancy Act. 

Here are the operating expensses that are chargeable to tenants, according to the MieterHilfe Public Association:

  • Water/wastewater and costs of leak testing, plus excess consumption due to burst pipes, but does not include disproportionate additional consumption for commercial operations;
  • Rubbish removal (and also clearing out floors and cellars);
  • Clearing out abandoned property;
  • Pest control, with costs such as extermination and periodic inspection or removal of pigeon droppings. Installation of pigeon screens is not included;
  • Sweeping fees (chimney sweep);
  • Electricity for lighting and communal facilities, such as the stairwell, but also replacement of light bulbs, fuses or switches;
  • Insurance premiums for fire, liability and water damage;
  • Insurance premiums for glass breakage and storm damage provided that more than half of the tenants have agreed to this being passed on;
  • Management fee (there is a set administration fee per square metre of usable space and building construction year)
  • House cleaning, including wages and social payments if there is a caretaker, plus materials; 
  • Public charges, unless there is a prohibition on passing them on – offsetting of property taxes is permitted;
  • Ongoing operating costs for communal facilities (lift, heating, playground, green areas, common rooms, etc.).

However, costs such as maintenance and repair work can never be charged under operating expenses.

The same goes for any ‘disproportionate additional costs or consumption due to commercial operations ‘, which refers to costs that are significantly higher than what would be considered normal for residential use or costs that are incurred due to the operation of a business within the rented property. 

READ ALSO: Tenant or landlord – Who pays which costs in Austria?

Vienna’s association for tenants MieterHilfe has a calculator that uses average values to show whether the Betriebskosten you pay are comparatively low, medium or high. The association notes, however, that even low values could be considered unauthorised billing in some cases. In contrast, high values could be correct – the calculator only shows if you are paying too much compared to other properties in the city.

You can check the values HERE. You will need to know either the total usable area of the building or the usable area of the flat and the operating cost share—this information is usually shown in a payment statement you receive from property management. 

What if I believe I am being unfairly charged?

If you think you are paying too much, but the charges are legal – such as for water electricity etc, then you would need to raise this issue with property management. They could take measures to save on operating costs, such as replacing old light bulbs with more energy-efficient ones or setting lights to a timer instead of a traditional light switch, for example.

There are many possible reasons for high or low values, according to the City of Vienna. For example, you may pay comparatively low for water one year because of a small number of residents, while the following year, there are leaking sanitary facilities and a burst water pipe that raises costs.

Buildings with many communal areas and green spaces often tend to have higher operating costs, especially for water, electricity, and housekeeping. 

However, things are different if you think you are being unduly charged—that is, there are charges in the operating costs that do not belong there, such as unapproved construction repair.

READ ALSO: Renting in Austria – The key things foreign residents need to know

If you are unsure of the costs, there is a significant deviation from average prices for no particular reason, or you believe that you are being charged for something not legally admissible as an operating cost, you could have a free check carried out by MieterHilfe or a tenant protection organisation. 

If there is a suspicion of unauthorised billing that cannot be dispelled between tenants and the property management company, this will be clarified at the arbitration board. The arbitration board is an independent body that mediates disputes between tenants and landlords. It is a point of contact before the courts in case of difficulties or legal disputes, and its decision is legally binding.

Property management companies and landlords must settle the operating costs for the previous year by 30 June at the latest and disclose them to tenants. This deadline is set to ensure that tenants have sufficient time to review their cost statements and raise any concerns before the new rental year begins. All expenses must be itemised in the statement, providing transparency and allowing tenants to see exactly what they are being charged for.

They are obliged to provide tenants with a detailed summary of the statement and the invoice documents. If the operating costs per square metre exceed €2, a more detailed review is recommended, according to the City of Vienna.

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