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Austrian Finance Minister quits over tax reform

Austria’s Finance Minister and Vice Chancellor Michael Spindelegger has resigned, after persistent criticism from his People's Party (ÖVP).

Austrian Finance Minister quits over tax reform
Michael Spindelegger. Photo: APA/Schlager

He made the announcement on Tuesday morning at an unexpected 7am press conference at the Finance Ministry.

He said he was resigning as he felt he was lacking loyalty and support from the conservative ÖVP and the Social Democrats (SPÖ) in the current tax reform debate. 

He said that reform was necessary to relieve the burden on the tax payer but that it must come at "the right time". 

"There has to be cohesion in a party. If the cohesion is no longer there, then the moment has come to hand over the tiller," he said.

The ÖVP has been locked in a battle with its senior coalition partner, Chancellor Werner Faymann's SPÖ, over how to finance income tax cuts to give a boost to the economy.

Spindelegger has been under pressure recently within his own party, with many demanding a greater urgency for tax reform and expressing discontent with the course the party has been taking.

He has refused to cut taxes unless the cuts can be financed without new levies.

Spindelegger is also the chairman of ÖVP, and has said he will resign from all his offices. There is no immediate indication as to who will succeed him.

The 54-year-old has been Vice Chancellor and ÖVP chairman since 2011, and Finance Minister since December 2013.

 

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AUSTRIAN CITIZENSHIP

Could presidential criticism lead to Austrian citizenship rule changes?

Federal President Alexander Van der Bellen has hit out at Austria's naturalisation process, saying "the hurdles are too high". But how hard is it to get Austrian citizenship - and will the criticism lead to change?

Could presidential criticism lead to Austrian citizenship rule changes?

Austria’s federal president Alexander Van der Bellen, who is eyeing a second term in office in the autumn elections, has said that the hurdles for citizenship are too high in the alpine country.

“Citizenship is a valuable asset. I think the hurdles for obtaining it are too high.”, he said in an interview with the newspaper Kleine Zeitung.

READ ALSO: EXPLAINED: How does Austria’s presidential election work?

Van der Bellen mentioned a case with a German citizen who has lived in Austria for 20 years and cannot obtain dual citizenship: “He can vote neither here nor there. And that is the European Union?”

Austria does not allow for dual citizenship of naturalised citizens except in very few cases (including naturalisation of those who are descendants of Holocaust victims).

This is one of the many hurdles to citizenship in the country.

What makes Austrian citizenship so difficult to get?

Citizenship through naturalisation, meaning you are not the son or daughter of an Austrian citizen, is particularly hard to get.

First of all, the majority of applicants will need to give up any other citizenships they hold. So, a British citizen taking Austrian nationality through marriage or residence time will have to give up their British passport.

READ ALSO: Which European countries have the toughest rules for gaining citizenship?

Besides severing that connection to a home country where people might still have many ties, this can lead to difficulties in matters of inheritance and property ownership, for example.

The naturalisation process is also long and expensive in Austria. In Vienna, the application costs €130. If successful, the new Austrian citizen can expect to pay from € 1,100 to € 1,500 just for the award – that doesn’t include costs with documentation, translation, and issuance of documents such as an Austrian passport.

The length of the process varies, but it can take more than a year for citizenship to be awarded.

The requirements will also be different depending on how long the person is legally an Austrian resident and what is their connection to the country.

READ ALSO: Reader question: Will my children get an Austrian passport if born in Austria?

For example, after 30 years of residence in Austria, you need to prove you are not a danger to the country and that you can support yourself.

You also need to prove German skills and pass a citizenship test.

The minimum amount of time of legal residency after which you can require citizenship is six years for people who fall into specific categories, such as legal and uninterrupted residence in Austria and possession of the citizenship of an EEA state, birth in Austria or German at a B2 level.

Will Austria change its citizenship rules?

It is improbable that there will be any significant changes soon. Despite Van der Bellen’s statements, citizenship laws are not within the federal president’s competence and mostly depend on legislative changes.

The party leading the ruling coalition, ÖVP, is against any changes, claiming that making the process easier would “depreciate” Austrian citizenship.

READ ALSO: ​​Why has naturalisation doubled in 2022 – and who are Austria’s new citizens?

Austria has recently seen a jump in naturalisation numbers, but that can largely be viewed as a one-off phenomenon after changes in the process for descendants of Nazi victims.

While junior partner Greens have been in favour of easing some rules, little is expected to happen with the ÖVP in power. The next parliamentary elections are set for 2024, though. If the SPÖ continues climbing in the polls, an SPÖ-Green coalition could push forward different rules.

Also, if the Red-Green-Yellow ruling coalition in Germany does succeed in easing naturalisation rules in the neighbouring country, Austria could see further pressure for domestic changes.

But that remains to be seen, mainly depending on the 2024 election results.

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