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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

Why 1.5 million people can’t vote in Austria’s crucial federal election

Almost one in five people in Austria won’t have a say in the upcoming election, mainly due to the country’s restrictive citizenship laws.

Published: 11 September 2024 10:15 CEST
Updated: 15 September 2024 08:19 CEST
Why 1.5 million people can't vote in Austria's crucial federal election

As Austria prepares for its upcoming National Council elections on September 29th, nearly 1.5 million people living in the country will be unable to participate despite being of voting age, Austrian media has reported.

This group, which represents around 19 percent of the population aged 16 and over, is largely composed of residents who do not hold Austrian citizenship.

While Austria has some of the most restrictive citizenship laws in the world, the election will still see some new eligible voters—particularly descendants of Nazi regime victims—casting their ballots for the first time, thanks to a 2019 amendment to the citizenship law that made the naturalisation process less restrictive for these cases. Among them is British actor Stephen Fry, whose grandmother fled Austria to escape Nazi persecution.

READ ALSO: Austria improves nationality law for descendants of Nazi victims

Over the past two decades, the number of residents not eligible to vote has more than doubled, from around 9 percent in 2002 to 19 percent today. Of the 1.5 million residents unable to vote, about half are citizens of other EU countries. While they are allowed to vote in EU elections, they are excluded from Austria’s national elections.

This growing number of non-voters contrasts with the shrinking pool of eligible voters. Despite having around 6.3 million eligible voters, Austria’s stringent naturalisation process means that only a small fraction of its long-term foreign residents can (or want to) attain citizenship and the right to vote.

READ ALSO: What makes Austrian citizenship so hard to get?

Who is eligible for citizenship in Austria?

Currently in Austria, if someone wants to take up citizenship via naturalisation they have to undergo an extensive and expensive process and fulfil specific criteria.

Generally, there needs to be at least 10 years of lawful and uninterrupted residence in Austria. But there are exceptions for those with citizenship of an EU or EEA country, those born in Austria, or married to an Austrian, for example.

The main hurdles, however, include having to give up any other citizenships, as Austria doesn’t allow dual citizenship in naturalisation cases with few exceptions, and paying a high fee, which depends on the municipality.

What’s at stake?

The elections will determine the composition of the National Council, Austria’s parliament. The far-right Freedom Party (FPÖ) is currently leading in the polls, followed by the centre-right Austrian People’s Party (ÖVP). The results could significantly change the country’s political landscape.

While many are still unable to vote, Austria’s decision to grant citizenship to descendants of Nazi regime victims has (slightly) expanded the voter base. 

Under this provision, around 27,800 people, mostly living abroad, have regained Austrian citizenship. The Foreign Ministry has encouraged these new citizens to participate in the elections.

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