More Money for Civil Service Workers?

Military Service: Chancellor Stocker’s “Green” Shift

A shift in policy is underway regarding military service.(Bild: Attila Molnar)

A recent shift in position by Federal Chancellor Christian Stocker is likely to inject new momentum into the debate over military service reform. As is well known, the government needs a two-thirds majority—and it now appears the Greens will be the ones to provide it... 

Ahead of today’s talks with the Greens, Chancellor Christian Stocker is no longer ruling out an increase in compensation for civil service workers. This is not included in the government agreement, “but it is in the statements and considerations on the matter that have been made public so far,” says Stocker. “That will now have to be discussed and then decided.”

The ÖVP had always ruled out higher pay for alternative service. This undermines efforts to make military service more attractive. The Greens, however, are making precisely that a prerequisite for agreeing to an extension of alternative service. “We will not accept a double disadvantage resulting from longer service and lower pay,” party leader Leonore Gewessler recently told the “Krone.”

The SPÖ and NEOS are unlikely to object to higher pay; both parties are committed to supporting those performing civilian service. That leaves the question of funding. The planned reform is already projected to cost the budget one billion euros through 2031.

The chancellor is seeking allies.(Bild: APA/HARALD SCHNEIDER)

Countering Criticism of the “Future Fund”
Regarding the “Zukunftsdepot” savings plan for young people, Stocker is sticking to the plans despite massive criticism. The basic structure of the model will remain the same. However, there could be changes regarding who is eligible to make contributions.

During the review, various parties criticized the fact that only parents—and not other relatives, godparents, etc.—are eligible to make contributions. The chancellor understands these objections: “It’s obvious that the group of contributors should be larger.” The goal here is to implement the best possible option.

Redistribution Is Not a Problem in Austria
The VP chairman is less sympathetic to objections that the “Future Fund” disproportionately benefits the wealthy. Stocker pointed to the low rate of people at risk of poverty compared to other countries, which he sees as evidence that the government is on the right track here. Austria has no problem with redistribution. However, we must also be successful when it comes to the future—and what could be better than giving young people a good start in life?

Stocker also emphasized that large sums of money are not needed to achieve a good return through the capital gains tax-exempt “Zukunftsdepot.” Anyone who contributes 50 euros per month will have 21,000 euros by the time the young person turns 18. A maximum of 5,000 euros can be deposited into the account each year.