Among other things, a bank levy and the abolition of educational leave were prepared for a decision in the National Council this week, as government coordinators Alexander Pröll (ÖVP) and Michaela Schmidt (SPÖ) announced after the government meeting. Additionally, a rent price freeze in certain areas was agreed upon. The budget is to be decided at the end of April/beginning of May.

Schmidt emphasized regarding the rent price freeze, which is to apply to old buildings as well as municipal and cooperative housing, that otherwise rents would have increased by an average of three percent from April. A total of 140 million euros in rental expenses would be saved. The State Secretary assured that an adequate regulation for new buildings would also be found. However, this is legally more complicated. Pröll also spoke of a significant and noticeable step.

The Chamber of Labor promptly demanded that privately financed apartments must also be included, as rents are exorbitantly high there. For the FPÖ, the government is only freezing rents at a maximum level. The Greens noted "first small commendable steps," but from their perspective, these are far from sufficient. Otherwise, the Greens saw the "demolition excavator" rolling in the cabinet, concerning the abolition of the climate bonus or the reintroduction of VAT on PV systems.

Support for the rent price freeze comes from the Austrian Tenants' Association (MVÖ). They speak of a "relief for hundreds of thousands of households in Austria." Criticism comes from the Austrian House and Landowners' Association (ÖHGB), which fears a halt to renovation and new construction activities. The landlords' side also criticizes that the measure is to be pushed through parliament so quickly. For the Austrian Real Estate Association (ÖVI), the "freezing of the value safeguards of category and reference amounts is not comprehensible for factual reasons." It mainly affects "already strictly protected old apartments, predominantly in Vienna."

Bank Levy Also to Be in the National Council This Week

According to Schmidt, the measures that are to be decided in the National Council this week after the government declaration are those for which savings for the budget have already been priced in from April. These include the abolition of educational leave, the increase of the bank levy, the continuation of the energy company contribution, the extension of the increased top tax rate by four years, the end of the VAT exemption for photovoltaic systems, the inclusion of e-cars in the motor-related insurance tax, the increase of the tobacco tax, and an increase of the betting fee to five percent.

In the case of educational leave, the general end is, of course, only a temporary one. Pröll and Schmidt assured that a precise successor model is being worked on in parallel. "The current system will be abolished, a new system is being considered," the details will be "submitted later."

Budget to be Approved in No More Than Two Months

The government representatives acknowledged that they are under time pressure regarding the budget. It is about implementing budget-effective measures such as the end of educational leave as quickly as possible to remain a "reliable partner at the EU level," said Pröll.

The budget is to be approved in no more than two months: "We assume that we will approve the budget in April/May and assume that the consolidation plan will hold," said Schmidt.

Also agreed upon in today's Council of Ministers was the range of responsibilities that Minister of the Chancellery Claudia Plakolm (ÖVP) will receive. They are wide-ranging from Europe to integration, families, youth, religious affairs, ethnic groups, and civil service. The acting Green Club Chairwoman Sigrid Maurer, on the other hand, criticized that the new Federal Ministries Act is only to come into force in April: "Now is not the time for a break. I appeal to the federal government to step up and finally get into action."

(APA/Red)

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