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Energy, corruption, labour shortage: Austria’s plans to face its major challenges

Austria's ÖVP-Greens coalition is trying to combat the country's critical challenges ahead of the national elections, while it struggles with unpopularity among voters. Here's what the government wants to do.

Published: 11 January 2023 13:34 CET

Austrian Chancellor Karl Nehammer is leader of the ÖVP.

Austrian Chancellor Karl Nehammer is leader of the centre-right ÖVP. (Photo by ATTILA KISBENEDEK / AFP)

Austria’s ruling coalition of centre-right party ÖVP and left-leaning Greens announced its plans and projects for 2023 at a press conference in Lower Austria on Wednesday.

The parties have a few months to combat several challenges for the country and themselves, as 2024 is an election year and neither is doing well on voting intention polls.

According to the most recent polls (INSA/eXXpress), the ÖVP, known as the Austrian People’s Party, is only third favourite with voters, with 22 percent (compared to the 37.5 percent of votes it got in 2019). The Greens are even worse: with only 9 percent of voters saying they plan to cast a ballot for them, they are in fifth place.

NATIONALRATSWAHL | Sonntagsfrage INSA/eXXpress

FPÖ: 28% (+2)
SPÖ: 25% (-2)
ÖVP: 22% (+1)
NEOS: 10% (+2)
GRÜNE: 9% (-1)
MFG: 2% (-1)
Sonstige: 4% (-1)

Änderungen zur letzten Umfrage vom 10. Dezember 2022

Verlauf: https://t.co/roFKebZlfU #nrw #NRWahl pic.twitter.com/2mWME3s00H

— Österreich Wählt (@Wahlen_AT) January 7, 2023

Many of the reasons for the lack of popularity should be addressed in 2023, with both parties announcing new measures to face the energy crisis, combat corruption and tackle the issue of the labour shortage in Austria.

“It’s about doing a good job as a government team, delivering on things you promise,” chancellor Karl Nehammer (ÖVP) said ahead of the announcements.

Here are the main measures, proposals, and plans announced.

Energy crisis

In order to face the energy crisis and make Austria more independent in the sector, several promises were made in an energy packet. They include measures for faster procedures for power plants (the so-called EIA amendment) and an expansion offensive for photovoltaic plants through a new “Renewable Expansion Acceleration Act”. In addition, the authorities said there would be subsidies in the area amounting to €600m in 2023.

The government also wants to increase biogas production in Austria (via the Renewable Gas Act and Biogas Ordinance).

Fighting corruption

Corruption cases have sullied the image of the ÖVP constantly since so-called Ibizagate in 2017, which involved its then junior coalition partners FPÖ, but brought on a series of investigations involving significant names in the People’s party.

Since then, a parliamentary inquiry commission has looked into the ÖVP history and members, with chat leaks, accusations and processes that culminated in the resignation of the former chancellor and once Austrian wunderkind Sebastian Kurz. The party is still in power with Nehammer, but it lost a lot of public support.

BACKGROUND: Austria’s Sebastian Kurz implicated by former ally in corruption scandal

Party leaders now hope to regain some of this public trust – even if they announced the package of anti-corruption laws as being due to the “blue scandals” (referencing the far-right opposition FPÖ party).

Vice-chancellor Wagner Kogler (Greens) said he was proud that the law is now a done deal between the coalition partners: “It’s here and it is irrevocable”, he said, adding that Austria will have one of the “strictest laws in Europe”.

However, long-awaited details of the plan will not be announced until Thursday, January 12th. Then, Justice Minister Alma Zadic (Greens) and Constitutional Minister Karoline Edtstadler (ÖVP) should present the new laws.

Economy and the labour market

Austria’s labour shortage affects all sectors of the economy, including health care and education, as The Local has been reporting. The federal government said it has created a working group to debate measures to deal with the crisis, according to Labour Minister Martin Kocher (ÖVP).

The government wants to make it more attractive to work in parallel with drawing a pension, increase incentives to remain in employment beyond the statutory retirement age, increase the number and tax-free amount of overtime bonuses and evaluate other existing tax exemptions for wage and salary supplements, the minister said.

“The goal is to make working in old age more attractive,” he added.

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COMPARE: The best commuter towns if you work in Vienna

Public transport works well in Austria, and over the past few years, especially after the Covid pandemic, most companies have become more flexible when it comes to allowing their employees to work from other places than the office.

This means that living outside Vienna has become more possible than earlier. If you work in the capital, there are many nearby towns and cities within reach.

Baden bei Wien

Baden bei Wien, a cute spa town in Lower Austria, is listed as one of UNESCO’s World Heritage sites.

You can reach Baden from Vienna in about 30 minutes by train. If you drive, it will take you around 40 minutes.

As a place to live, Baden bei Wien offers a great mix of beautiful nature and culture. The town is located in the forested areas known as Vienna Woods where you can enjoy different hiking and biking trails just outside of town. There are also many forests to explore and wineries to visit.

Baden has a rich cultural heritage, and one of its highlights is The Kurpark, a beautiful park in centre of the town, with gardens, fountains, and historic buildings. It is also where the famous spa, Römertherme, is located.

Throughout the year, the town offers various festivals and events such as the Badener Sommernacht and the Beethoven Festival.

Unfortunately, property prices in Baden bei Wien are not cheap and the town has some of the most expensive real estate in Lower Austria. It is still cheaper to rent something in Baden than in Vienna though, as rent prices in the capital are 8.7 percent higher, according to Numbeo.

Kurpark in Baden bei Wien. Photo by Roman Vasilovski on Unsplash

Korneuburg

Korneuburg is a historic town in Lower Austria, located on the banks of the Danube River.

Because it only takes about 30 minutes to reach the town from Vienna, it is a popular place to live if you work in the capital.

Korneuburg offers quiet living near beautiful nature and water. It is a popular alternative to the more stressful and crowded Vienna.

The town has many parks, and in the surrounding area, you will find great nature spots like the hill Bisamberg, where you can enjoy marked hiking and cycling trails.

Korneuburg is known for its rich history, and some of the town’s highlights are Korneuburg Castle, which was built in the 12th century, and the cute and small old town with its narrow streets and historic buildings.

In Korneuburg, The Local found one bedroom apartments to rent for less than €700 per month.

Mödling

Mödling, located around 14 kilometres south of Vienna in Lower Austria, is known for its closeness to nature and rich cultural heritage.

It only takes 15 minutes of train travel to reach Mödling from Vienna. If you travel by car, it will take you 30 minutes.

Mödling is known for its surrounding nature and offers many hiking, jogging, and mountain biking trails. It is also famous for having one of the region’s best via ferratas (klettersteig) for beginner climbers, Mödlinger Klettersteig.

The town also has a rich cultural heritage. For example, Beethoven dedicated the music Mödlinger Tänze (Mödling Dances) to the town, and there is also a Beethoven museum where you can go and learn more about the famous composer.

Furthermore, Mödling is famous for The Mödling Wine Festival, which is held annually in the historic town centre. Here you can go to try local wines, culinary dishes, and listen to traditional music.

The Local found property prices per square meter for Mödling to cost around €3,986.

City centre of Mödling. Photo by Roman Vasilovski on Unsplash

Neusiedl am See

If you want to live near a big lake, settling down in Neusiedl am See in Burgenland might be a great idea.

This town is surrounded by Austria’s most famous wine regions, and it only takes you 40 minutes to travel there from Vienna by train, and a similar time by car.

The town is a popular summer and spring day trip destination for people living in Vienna who want to escape the city to spend some time at the lake. The town centre offers a mixture of modern and traditional cafes, restaurants and bars.

The lake is a great place for enjoying sports such as kite surfing, cycling, hiking, and swimming. Many people also visit the area for birdwatching since it is home to a diversity of birds.

Property is generally considered to be quite affordable in Burgenland, but Neusiedl am See is one of most expensive district in the province.

If you want to buy a house, the average price per square meter is €3.623.Prices for apartments are expected to be similar.

A boat of a sailing school sails in front of the marina in Neusiedl am See. (Photo by Alex HALADA / AFP)

Klosterneuburg

Klosterneuburg, located in the Vienna Woods in Lower Austria, is home to a population of 27,500.

If you are coming from Vienna, you can reach Klosterneuburg in about 40 minutes by train, while driving takes around 30 minutes via the B14 and the B227.

The town is known for its historic Klosterneuburg Monastery that was built in the 12th century and is described by Wienerwald Tourismus as “one of the most beautiful and charming forest communities in the Vienna Woods”.

Klosterneuburg has a historical city centre where you can meet up with your friends, eat at one of the restaurants, do your groceries or maybe visit some of the museums to check out an exhibition.

Since the town is located in the Vienna Woods, nature is easy accessible and you can reach many hiking trails just by walking from the city centre.

According to Numbeo, rent prices in Klosterneuburg are 50.4 percent lower than in Vienna. To rent a one bedroom apartment you have to pay around €715 in Klosterneuburg, according to Numbeo.

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Wiener Neustadt

Wiener Neustadt is a city located in Lower Austria, and a more affordable and quieter alternative to living in the capital.

The city is one of the largest rail transport hubs in Austria and is well connected to the capital, which you can reach in about 30 minutes by train. Driving takes around 50 minutes if you go via the S Autobahn/E59.

This city is also a great alternative to Vienna if you love nature since it is surrounded by it. Wiener Neustadt offers bicycle lanes and trails, including the EuroVelo 9 – a long-distance cycle path connecting the Czech Republic, Austria, and Slovenia.

Schneeberg is also located nearby, which is the highest mountain in the area and a great place to go if you want to enjoy hiking, ski touring, and some great views.

The price for buying an apartment in the centre of Wiener Neustadt is around €3,500 per square meter. Rent prices are in general 37 percent lower than in Vienna, according to Numbeo.

Woman biking through a park in Wiener Neustadt. Photo by Michael Pointner on Unsplash

St. Pölten

St. Pölten is the capital of Lower Austria and it is known for having both an entrepreneurial and an art scene.

From Vienna, you can take a direct train and reach St. Pölten in about 20 to 30 minutes, whereas driving takes you one hour. Using the train is very convenient since the train station is centrally located in the old town of St.Pölten.

The city has a cute historical town, with small streets and historical buildings like the church, The Diocese of Sankt Pölten. And if you feel like enjoying some cultural performances, you can visit the famous Festspielhaus.

St. Pölten offers affordable living in a city near nature. The mountain Schneeberg is very nearby and it does not take you long to get there if you want to enjoy hiking, climbing or skiing.

The Local found one bedroom apartments to rent in the city for less than €600 per month.