Millions blocked

Deal with Italy puts army in a quandary

Defense Minister Klaudia Tanner would have liked 200 million for new aircraft ...(Bild: Pail Sepp)

The "Krone" had already pointed out "optical tricks" with the figures from the defense department when the budget was presented in spring. At the time, the problem with the so-called authorizations was denied, but now it has become apparent: The funds for the purchase of jet trainers from Italy are blocked.

Austria is planning to purchase twelve Leonardo M-346 FA jet trainers to replace the decommissioned Saab 105s. The aircraft are important for active airspace surveillance and for training Eurofighter pilots. The down payment for the deal is to be financed from provisions and so-called authorizations. The problem here is that the authorizations amounting to 200 million euros are not an active budget, contrary to the figures presented in the spring. These are funds that must first be released by the Ministry of Finance under certain conditions. As the "Krone" has learned, these funds are now blocked.

Contract to be signed by the end of the year
The Ministry of Finance did not comment on this when asked. The Ministry of Defense stated the following: "The Republic of Austria is in contract negotiations with the Italian state, or rather with Leonardo. As soon as all the facts are on the table, including industrial cooperation, the payment modalities will be examined and agreed together with the Ministry of Finance." Most recently, the aim was to sign the contract by the end of the year.

Austria wants to buy 12 Leonardo.(Bild: Leonardo)

At the end of the day, the money will have to be found; pulling out of the planned deal would be an international and bilateral embarrassment. Italian Prime Minister Giorgia Meloni and Federal Chancellor Christian Stocker only met two weeks ago at the historic breakthrough at the Brenner Pass. According to reports, they also discussed the Leonardo on the sidelines.

Defense Minister Klaudia Tanner announced the renewal of the military infrastructure on Tuesday. This year and next year, a total of 650 million euros will be spent on this. From 2020 to 2026, a total of 1.325 billion euros will be invested in construction and infrastructure projects.

Cuts in the social sector too
Bad budget news also comes from the social services department. The mobility allowance for people with disabilities will be halved this year from 697 to 335 euros. In 2027, it is even to be completely abolished. The mobility allowance is intended for working people with disabilities who cannot reasonably be expected to use public transport. The payment is intended to compensate for the additional costs of traveling by car.

Social Affairs Minister Korinna Schumann justifies the reduction with the budgetary situation of the equalization tax fund, through which the mobility allowance is paid out. The fund is fed by compensation payments from companies that do not fulfill the obligation to employ people with disabilities. In recent years, expenditure from the fund has been significantly increased "without ensuring sustainable financing". According to the Ministry of Social Affairs, this will result in a funding gap of 100 million from 2026. An additional 65 million has been released from the federal budget to cover this. 35 million would have to be saved.