• Austria's news in English

Call for parliamentary investigation into Hypo

The Local · 1 Jul 2014, 14:51

Published: 01 Jul 2014 14:51 GMT+02:00

Facebook Twitter Google+ reddit

"It looks like there will be a parliamentary investigation committee," he said. Around 140,000 Austrians have signed another petition online backing a parliamentary investigation into the nationalised bank. 

Meanwhile the governing coalition has commissioned a panel of experts to look into the matter.

A parliamentary committee on petitions was due to deal with several issues concerning the Hypo bank on Tuesday. A total of 250,000 Austrians have signed petitions demanding clarification about what will happen to the troubled bank. 

The government has been accused of dragging its feet over what to do next while legal proceedings concerning former Hypo officials and Carinthian politicians are moving slowly.  The former CEO of the state bank is currently serving a prison term of six and a half years for embezzlement and fraud.

Hypo Alpe Adria has received €5.5 billion in state aid since 2008. Hypo's costs will push state debt to 80 percent of gross domestic product this year.

Opposition parties are demanding a parliamentary investigation into how Austria got into this mess and whether it really had to take over the bank, which nearly collapsed after breakneck expansion fuelled by debt guarantees from its home province of Carinthia.

Story continues below…

The unaffordable guarantees granted by the late far-right leader Jörg Haider's regional government forced Austria to buy Hypo from Germany's Bayern Landesbank in 1999 for a symbolic one euro, or else see the province go under a year after the collapse of Lehman Brothers.

While the state has become caught up in the bank scandal, it is difficult for the public to get information on the exact amount of money propping up the bank, why so much is needed, and who is overseeing the process.

For more news from Austria, join us on Facebook and Twitter.

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
'UFO' sightings in skies above Vienna and Graz
File image of an alleged UFO. Photo: Flickr/Dimapolo

Worried Austrians called police and posted videos online after sighting a UFO-like device above the capital Vienna.

Austrian police rescue 47 puppies from animal smuggler
Photo: Landespolizeidirektion Burgenland

Austrian police have seized 47 puppies found in a car at the Hungarian border.

Call for FPÖ chief's Facebook page to be shut
Heinz-Christian Strache. Photo: Facebook/Personal

The Austrian lawyer who filed a criminal case against the leader of the Freedom Party for inciting hatred has called for his Facebook page to be shut down.

Female terror suspect 'planned suicide attack'
Photo: Paul Gillingwater

Police have arrested the wife of a Chechen terror suspect after they found evidence that the pair were planning a suicide attack in Austria.

'Death must be Viennese', and not just at Halloween
Prater amusement features memento mori. Photo: Paul Gillingwater

Dominik Creazzi, "Paranormal Investigator" embossed on his jacket, strains his ears among the decaying tombstones of Vienna's central cemetery, the last resting place of three million mortals from Beethoven to "Rock Me Amadeus" singer Falco.

ECJ puts brakes on deportation of Iraqi family
Photo: ORF

An Iraqi family threatened with deportation has been granted a brief reprieve after the European Court of Justice recommended they be allowed to stay in Austria for the time being.

Flats evacuated after man swallows explosive substance
A decontamination squad was ordered in. Photo: MA 68 Lichtbildstelle

A block of flats in Vienna had to be evacuated after a suicidal resident swallowed a highly toxic and explosive substance.

'Horror clown' threatens bus driver in Vienna's Donaustadt
Pennywise, the original scary clown from the movie It. Photo: Warner Bros

A man disguised as a ‘horror clown’ threatened a bus driver in Vienna’s Donaustadt district and vandalised the bus.

Man lived with body of murdered lover for weeks

A man has been arrested in Graz after police discovered the body of his girlfriend hidden in the shower cubicle of their rented apartment.

Austrian far-right leader brands Merkel 'dangerous'
Heinz-Christian Strache. Photo: Facebook/Personal

The head of Austria's far-right Freedom Party has branded Angela Merkel Europe's most dangerous politician.

12 brilliant German words you won't find in English
Sponsored Article
Last chance to vote absentee in the US elections
Five films which will change your mind about Austrian cinema
Those surprising Austrians!
100 years since the last emperor's death
Afghani family's new home in Austria
Der you learn Deutsch?
Delighted by the light
Beware these passport scams
Of course we skipped Oarsch
Foodies rejoice at the choice!
Travel & Tourism
10 years after her escape from captivity
Surviving the Brexit for British expats
Day 2 of the World Bodypainting Festival 2016
Is Islam hostile to Western society?
Bodypainting festival in southern Austria
Europe's ice cream capital
Best Austrian beauty spots
Travel & Tourism
Three days in Vienna as a tourist
How to make friends in Austria
jobs available