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ECONOMY

EXPLAINED: Is there much poverty in Austria?

Austria is known for being a rich country, but there is a considerable part of its population with significant material and social disadvantage.

EXPLAINED: Is there much poverty in Austria?
What is it like to first move to Austria? We asked our readers. (Photo by Dan V on Unsplash)

Austria is generally seen as a rich country, and its cities often rank top in quality of life. According to data from Organisation for Economic Co-operation and Development (OECD), Austria’s gross domestic product (GDP) is on par with the OECD’s best performing countries, and inequality is lower than in most advanced countries.

Several other indicators also show how rich the country is – including the fact that about 72 percent of people aged 15 to 64 in Austria have a paid job, above the OECD employment average of 66 percent.

READ ALSO: EXPLAINED: Why is Austria so rich?

However obviously not every household enjoys the same standard of living in Austria. Austrian authorities are very clear when they say, “yes, poverty also exists in Austria”.

According to the country’s data agency Statistik Austria, about 17.3 percent of the people in private households (around 1.5 million people) are at risk of poverty or exclusion.

This means people who are in “significant material and social disadvantage” have a low household income relative to the median of the population or have no or very low “labour intensity” – meaning that they are unemployed or marginally employed.

What is considered poverty?

Poverty always means a lack of opportunities, according to the Austrian Die Armutskonferenz, a network association that fights poverty and social exclusion in Austria.

A “significant material deprivation”, the term for manifested poverty, happens when low incomes are associated with restrictions in central areas of life. For example, not being able to replace worn clothes, eat healthily, not being able to keep a home properly warm or cover unexpected expenses.

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

“Poverty is not only affected by those who sleep on the street or in cardboard boxes. In rich countries such as Austria, poverty is often only visible at second glance.”, Armutskonferenz says.

Those who live in poverty in Austria often experience exclusion, loneliness, and isolation – they can no longer afford to invite friends and family to dinner or occasionally go to the cinema, for example.

poverty austria

A man begs for money on the Ring street near the Hofburg palace in Vienna, Austria on April 8, 2021. (Photo by JOE KLAMAR / AFP)

Who are the people at risk of poverty?

Children, women in old age, single parents, the long-term unemployed, and people without Austrian citizenship are particularly at risk, according to Statistik Austria.

A quarter of those affected by poverty in Austria are younger than 26 years old and dependent on their parents, who are most likely immigrants, unemployed, single parents or have jobs that cannot support a family.

READ ALSO: Cost of living: Where are rents rising fastest in Austria?

Women are particularly affected because they often are the primary (if not sole) carers in a family, staying at home or taking minor jobs instead of searching for full-time employment.

Moreover, since Austria’s welfare state is strongly linked to the labour market, women are often marginalised.

Where in Austria are those at risk of poverty?

A federal study shows that Vienna has the highest percentage of people at risk of poverty or social exclusion, 27 percent. While in Austria, the rate of people at risk is approximately 17 percent, in Vorarlberg, that number reaches 24 percent.

In Carinthia, 17 percent of the population is considered at risk, followed by Tyrol (16) and Styria (15). Salzburg and Burgenland have 13 percent of the people just within the threshold, and Lower Austria and Upper Austria have the lowest rates, at 12 percent and 11 percent, respectively.

Statistik: Quote der Armuts- oder Ausgrenzungsgefährdung in Österreich nach Bundesländern im Dreijahresdurchschnitt 2019 bis 2021 | Statista
Mehr Statistiken finden Sie bei Statista

What does Austria do to prevent poverty?

Austria has a strong welfare state which reduces the risk of poverty and protects most of the population from it – especially during crises such as the Covid pandemic.

Social benefits reduce the risk of poverty from 45 percent to 14.7 percent in adverse situations, according to Armutskonferenz. Unemployment benefits, emergency and minimum security, and housing and long-term care allowance have the most significant impact.

READ ALSO: EXPLAINED: How to claim your €150 energy discount in Austria

However, associations call on the government to implement further measures to combat and prevent poverty. For example, they ask for awareness-raising regarding approaches to minorities and marginalised people, improvement of allowances and family schemes, and more offers of free activities.

Social and care groups also ask for measures to reduce educational inequality, saying it is necessary to ensure education completion for all children – which will help prevent child poverty.

For young people, they claim it is necessary to fight unemployment and offer diversified education and training options.

How can I help reduce poverty in Austria?

There are several known and renowned associations that fight poverty in Austria. Armutskonferenz is one, but Caritas is also a very well-known organisation.

You can also get involved politically and voice demands for better policies and government assistance. It is also essential, the organisations say, to help ensure that prejudices and stereotypes concerning poverty experiences are not spread so that people in this situation can still have opportunities in life.

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TRAVEL NEWS

Reader question: What will EES mean for foreigners living in Europe?

The EU's new Entry & Exit System (EES) of enhanced passport controls is due to come into force later this year, but among many questions that remain is the situation for non-EU nationals who live in the EU or Schengen zone.

Reader question: What will EES mean for foreigners living in Europe?

Currently scheduled to start in autumn 2024 (unless it’s delayed again, which is not unlikely) the EU’s new Entry & Exit System is basically an enhanced passport check at external EU borders, including a facial scan and fingerprinting.

You can find a full explanation of the new system HERE.

Travellers crossing an external EU or Schengen border for the first time will be required to complete EES ‘pre-registration’ formalities including that facial scan and fingerprinting.

There are, however, several groups exempt from EES and one of them is non-EU nationals who have a residency permit or long-stay visa for an EU country.

So if you’re a foreigner living in the EU or Schengen zone, here’s what you need to know.

Exempt

One of the stated aims of EES is to tighten up enforcement of over-staying – IE, people who stay longer than 90 days in every 180 without a visa, or those who overstay the limits of their visa.

Obviously these limits do not apply to non-EU nationals who are resident in the EU or Schengen zone, which is why this group is exempt from EES checks. They will instead be required to show their passport and residency permit/visa when crossing a border, just as they do now.

In its explanations of how EES will work, the European Commission is clear – exempt groups include non-EU residents of the Bloc.

A Commission spokesman told The Local: “Non-EU citizens residing in the EU are not in the scope of the EES and will not be subject to pre-enrollment of data in the EES via self-service systems. The use of automation remains under the responsibility of the Member States and its availability in border crossing points is not mandatory.

“When crossing the borders, holders of EU residence permits should be able to present to the border authorities their valid travel documents and residence permits.”

How this will work

How this will work on the ground, however, is a lot less clear.

Most ports/airports/terminals have two passport queues – EU and non-EU. It remains unclear whether the non-EU queue will have a separate section for those who are exempt from EES.

It does seem clear that exempt groups will not be able to use the automated passport scanners – since those cannot scan additional documents like residency permits – but should instead use manned passport booths. However it is not clear whether these will be available at all airports/ports/terminals or how non-EU residents of the EU will be directed to those services.

There’s also the issue that individual border guards are not always clear on the processes and rules for non-EU residents of the EU – even under the current system it’s relatively commonly for EU residents to have their passports incorrectly stamped or be given incorrect information about passport stamping by border guards.

Brits in particular will remember the immediate post-Brexit period when the processes as described by the EU and national authorities frequently did not match what was happening on the ground.

The Local will continue to try and get answers on these questions. 

READ ALSO What will EES mean for dual nationals

What if I live in the EU but I don’t have a visa/residency permit?

For most non-EU citizens, having either a visa or a residency permit is obligatory in order to be legally resident.

However, there is one exception: UK citizens who were legally resident in the EU prior to the end of the Brexit transition period and who live in one of the “declaratory” countries where getting a post-Brexit residency card was optional, rather than compulsory. Declaratory countries include Germany and Italy.

Although it is legal for people in this situation to live in those countries without a residency permit, authorities already advise people to get one in order to avoid confusion/hassle/delays at the border. Although EES does not change any rules relating to residency or travel, it seems likely that it will be more hassle to travel without a residency card than it is now.

Our advice? Things are going to be chaotic enough, getting a residency permit seems likely to save you a considerable amount of hassle.

Delays 

Although residents of the EU do not need to complete EES formalities, they will be affected if the new system causes long queues or delays at the border.

Several countries have expressed worries about this, with the UK-France border a particular cause for concern.

READ ALSO Travellers could face ’14 hours queues’ at UK-France border

Where does it apply?

EES is about external EU/Schengen borders, so does not apply if you are travelling within the Schengen zone – eg taking the train from France to Germany or flying from Spain to Sweden.

Ireland and Cyprus, despite being in the EU, are not in the Schengen zone so will not be using EES, they will continue to stamp passports manually.

Norway, Switzerland and Iceland – countries that are in the Schengen zone but not in the EU – will be using EES.

The full list of countries using EES is: Austria, Belgium, Bulgaria, Croatia, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and Switzerland.

Therefore a journey between any of the countries listed above will not be covered by EES.

However a journey in or out of any of those countries from a country not listed above will be covered by EES.

You can find our full Q&A on EES HERE.

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