Federal and State Governments Discuss Social Welfare Reform

Representatives from the federal and state governments met on Thursday at the Ministry of Social Affairs for a "kick-off meeting" on the planned reform of social welfare. The topic was constitutional issues that had led to disagreements in advance. The goal is a nationwide standardization of the currently different regulations by early 2027. In addition to Social Minister Korinna Schumann (SPÖ), the social spokespersons of ÖVP and NEOS as well as representatives of the federal states participated.

"The legal fog has cleared"

The outcome of the first meeting was interpreted quite differently by the participants. While representatives of ÖVP and SPÖ were quite optimistic after the approximately one-and-a-half-hour meeting, the Freedom Party regional councilor from Styria, Hannes Amesbauer, expressed criticism. "The legal fog has cleared," said Upper Austrian Social Councilor Christian Dörfel (ÖVP) to media representatives after the meeting. A possible application of the waiting period intended for refugees to Austrians was "off the table," according to Dörfel.

"It was a more than good start" to what are sure to be long negotiations, said Vienna's Social Councilor Peter Hacker (SPÖ). A waiting period for Austrians was "just a rhetorical aberration." It was clear that those entitled to asylum must be treated equally under European law as citizens, but that does not mean they must receive the same measures. The meeting was about the joint "commitment" to a unified social welfare, but many questions about the concrete implementation remain open, said Vorarlberg's Social Councilor Martina Rüscher (ÖVP), who participated online, to the APA. There is no concrete timetable yet, only the goal that the new social welfare should come into force on July 1, 2027.

FPÖ Councilor sees "bumpy start"

The Styrian FPÖ Councilor Amesbauer was less positive, speaking of a "bumpy start." He was returning "quite perplexed" to Styria. There was no information on what exactly the federal government was planning. The guideline for the reform of social welfare must be the model in Styria and certainly not the Vienna model with significantly higher standard rates, for example for large families, said Amesbauer.

For Tyrol's Social Councilor Eva Pawlata (SPÖ), the joint conference was initially a first step - after all, the federal states are "very differently" positioned. "It is important to me that Tyrol maintains an appropriate level of benefits with its challenging conditions - such as high housing and living costs," she said afterwards to the APA. Therefore, she could "hardly imagine" a uniform level of social welfare across Austria.

"Lower Austria has the strictest social welfare of all federal states - and it should stay that way," emphasized Councilor Christiane Teschl-Hofmeister (ÖVP) after the meeting. "The focus on the quick return to the labor market is clearly to be welcomed. Those who refuse work, training, or mandatory German courses must expect cuts." Performance must pay off, added Teschl-Hofmeister. "And this clear line can also be a model for all of Austria."

Confusion has arisen

The innovations under the title "Social Assistance NEW" were already roughly outlined in the government program, but the plans have not progressed much further so far. Confusion was caused in the last two weeks by the question of legal concerns regarding the planned waiting period for refugees, during which they are to receive only reduced integration assistance.

Minister Schumann had commissioned a statement from the Constitutional Service of the Federal Chancellery, which was made public via "Presse" the day before today's meeting. According to it, for reasons of equal treatment, the planned "integration phase" would have to apply not only to immigrants but to all applicants - and thus also to Austrian citizens. This report supported a view that the Ministry of Social Affairs had already communicated two weeks ago - and which had caused irritation among the coalition partners ÖVP and NEOS.

The Minister responsible for integration, Claudia Plakolm (ÖVP), repeatedly referred to the so-called status regulation of the EU, which will apply from mid-2026. According to Plakolm, it is legally quite possible to link social benefits to integration measures, as she reiterated on Wednesday evening. It was also clear to the NEOS that "Austrians do not have to complete an integration phase in the new social assistance," according to the Liberals.

In a "wording" of the Constitutional Service circulating in government circles on Thursday, which is available to the APA, it states that it is "in principle" constitutionally permissible for nationals and foreigners to be treated differently. However, the regulations must be "objective" in themselves. There is also a legal basis under EU law that requires equal treatment of Austrians and those entitled to asylum. However, it may be stipulated that "social assistance for those entitled to asylum can be made dependent on the asylum seeker effectively participating in integration measures," the document states. The state must then also provide such integration measures. This "of course does not apply to Austrian citizens."

Greens: "Government Chaos and Confusion Around Social Assistance Reform"

These intra-coalition confusions were criticized by the Greens. "The government chaos and confusion around the social assistance reform continues merrily," said the Green social spokesperson Markus Koza in a statement on Thursday. Instead of constantly producing new announcements and half-baked ideas, the government should seriously work on a reform with social organizations, he demanded. Social organizations also repeated their demand for involvement in the reform process. The Volkshilfe warned against a race to the bottom and demanded "poverty-proof minimum rates." The Poverty Conference also warned against "destroying the last social safety net."

The subject of the negotiations is also the question of a targeted "graduation" of social assistance contributions according to the number of children (less per capita benefit from a certain number of children). A corresponding nationwide regulation was overturned by the Constitutional Court in December 2019, as it was considered a disadvantage for families with many children and thus unconstitutional. Individual federal states have now introduced or planned their own rules with graduations.

In addition to the unification of the currently different regulations depending on the federal state, stricter rules are also planned for the "Minimum Security NEW," which are primarily aimed at immigrants. For example, a waiting period with limited benefits is planned (the aforementioned "integration phase"). Instead of the full amount of social assistance, there will only be an "integration allowance" during this phase. Benefits are to be linked to the acquisition of German, job placement, and the transmission of values. The government is also considering sanction options - the design is still open.

While the ÖVP strongly focuses on more restrictive regulations, the SPÖ always emphasizes the need to remove children from the logic of social assistance - without elaborating further so far. There is talk of a "future security for children." In addition to monetary benefits, the focus is to be placed primarily on in-kind benefits.

(APA/Red)

This article has been automatically translated, read the original article here.