Chancellor to the "Krone":

“Only” 2500 euros for Syrian family after reform

Federal Chancellor Christian Stocker in conversation with Petja Mladenova and Nikolaus Frings about the welfare reform and why inheritance taxes are still not an issue, among other things(Bild: Mario Urbantschitsch)

Only 2500 instead of 9000 euros - Federal Chancellor Christian Stocker wants to massively reduce social assistance for large families. He promises in the "Krone" interview that the budget reform will succeed without new taxes. The planned pension adjustment remains despite protests.

"Krone": Mr. Chancellor, the government's announcement to make savings on pensions and civil servants has triggered a lot of criticism. Do you understand the resentment?
Christian Stocker: Inflation is too high at around four percent, I would like to reduce it to two percent next year. To achieve this, it is necessary for everyone to make a contribution. I am very grateful that pensioners will make this contribution, because I know that it is not a matter of course. But it must also be said that in the past we have made adjustments above the rate of inflation. Those were times when the state budget was better off. In difficult times like the ones we are currently experiencing, I believe this solution is a reasonable contribution.

Many people have no understanding and are angry. We have received calls from readers who have announced that they are leaving the party. What do you say to these people?
We have done the right thing, and that is my claim. I want to do the right thing for this country. The time ahead of us will not be easy. And not everything will happen immediately. But I am deeply convinced that together we can manage to maneuver our way out of this situation. It's not just about budget consolidation, it's also about the inflation rate. The signal we have now given as the Federal Government has been called for by many experts in the past.

But many experts also say that at the end of the day, the "social grading of pensions is antisocial because it penalizes those who have paid in more". This would also contradict the idea of benefits that the ÖVP likes to preach. Isn't that something that will become a problem in the long run?
I'm well aware of that. Conversely, it was also the case that this social graduation was demanded by many and then became part of the solution in the negotiations. But this is obviously not a permanent model. It is not the aim that this will happen every year.

Stocker also spoke to the "Krone" about the construction sites in the health sector.(Bild: Mario Urbantschitsch)

On another topic that people are also very concerned about, namely health and healthcare. The previous government tried unsuccessfully to reduce the long waiting times and push back the two-tier medical system. Why can't the government somehow manage to change this?
We want to improve the situation for patients. But that won't be easy. There are many players in the healthcare sector in particular: the health insurance fund, the professional association of doctors, the provinces as the maintainers of the hospitals and also the municipalities, some of which run their own hospitals, and then the federal government. We held talks throughout the summer. The basic financial resources in the healthcare sector are not bad by European standards, but the funds are not being used efficiently enough.

The government has announced a welfare reform. Payments in the federal states are to be standardized. What is your aim here?
It's no secret and will come as no surprise to anyone that I don't find it a satisfactory model for a family to receive 9,000 euros net in social assistance. We should take our cue from the federal states, which have significantly lower rates. That would be Lower Austria or Upper Austria, for example, where it works very well. We also want to focus more on benefits in kind. Nobody wants children in this country to be poor. Nobody wants children in this country to suffer because they don't have everything they need. That is why we will, of course, always take the best interests of the child into account - and that also works with benefits in kind.

It's no secret and will come as no surprise to anyone that I don't find it a satisfactory model for a family to receive 9,000 euros net in welfare benefits.

Kanzler Christian Stocker

If you say that 9,000 euros is not justifiable, in which direction should it go? What do you think is reasonable for a family with six or seven children who don't work?
I believe that the models we have in Lower Austria and Upper Austria are perfectly practicable models. They go towards 2500 euros for families with six, seven or more children.

Budget restructuring is of course also a very big issue for the government. Will you stick to the budget restructuring path?
The information from the Ministry of Finance shows that we are on track with the federal budget implementation. In other words, there is no deviation.

So there is no Plan B, where you say that if you miss the path, additional savings will be made, or that inheritance tax might become an issue again next year, are you ruling that out?
There are no plans in the government program to introduce an inheritance tax. And there are also no plans to renegotiate this again. I see Markus Marterbauer as a very pragmatic finance minister who works on the basis of the government program and who has repeatedly said that we need economic growth again. If tax revenue does not increase overall, we will consolidate ourselves to death. The aim must therefore be to bring inflation down and economic growth up.

Is the honeymoon over after six months of governing or is the mood in the three-party constellation not intact?
This should not be exaggerated one way or the other. It was never a honeymoon and there were never any disputes that would jeopardize the government. We are all making an effort to jump over our shadows despite the very different composition of the federal government. Live and let live. Sometimes that is easier for one party, sometimes more difficult for the other. But the effort to do the right thing for Austria together has been present in all three parties since the beginning.

The ÖVP leader understands the anger of pensioners, but he stands by his decision to partially adjust pensions below inflation.(Bild: Mario Urbantschitsch)

If you believe the polls, the population does not appreciate the government's efforts. How do you explain this?
Unfortunately, there is no such thing as the famous switch that the government flips and all problems are solved immediately. It would be nice - but the reality is that government decisions also need majorities in parliament.

We have also heard from government circles that this pension issue, with which you rushed ahead in the ORF "summer talk", should actually have been discussed in the middle of the month. Was it wise to do this - a week before FPÖ leader Herbert Kickl makes his appearance?
I don't think it's wise to make the decisions of a federal government dependent on a television appearance by Herbert Kickl. I believe that the decision was the right one and that the solution is a good one. From that point of view, I am very happy with it.

I will continue to go on vacation in the future. And it will also be far below the legal limit in the future. But I won't make it dependent on whether Herbert Kickl is on TV or mountaineering!

Kanzler Christian Stocker

There was also criticism that you were on vacation at the time and that Vice Chancellor Andreas Babler was partly in New York during the negotiations. Looking back, was that a mistake?
Yes, it's true, I was away for a week and made up for my summer vacation. I will also take vacations in the future. And it will be well below the legal limit in the future too. But I won't make it dependent on whether Herbert Kickl is on TV or mountaineering. My schedule is well filled. You can rest assured that the work-life balance is one that focuses more on work than leisure.