Austerity policies in Vienna reduce social assistance and put pressure on holders of subsidiary protection.
Vienna is witnessing widespread political and social debate after agreeing to a new austerity package affecting the city's social welfare system. The government, led by the SPÖ party, asserts that the measures are necessary to close a significant financial gap, but critics argue that the cuts hit people who are already struggling to meet their basic needs.
According to the newspaper Der Standard, Vienna — which has long prided itself on a strong social safety net — is now following an unusually harsh austerity path. While officials point to a severe financial crisis and limited alternatives, opponents argue that the city has ignored possible solutions, such as new funding tools and adjustments to local tax policies, that could have mitigated the impact of the cuts.
The cuts affect the most vulnerable groups, including those unable to work permanently and people with disabilities. It is expected that each individual in this category will lose about 3,000 euros annually. Analysts describe the move as harsh and ill-considered, unrelated to the concept of 'incentives to work' that the government uses to justify other cuts, such as reducing support for some families.
The newspaper points out that Vienna's options for reducing expenses have become extremely limited. Cutting public transport budgets will harm climate goals, reducing housing funding will raise rents, and cutting education and kindergarten will increase integration problems — which means greater social costs in the future.
The newspaper also pointed out that Vienna has tools that have not yet been fully utilized, such as imposing a City-Maut tax (urban toll) on congested areas, or reviving the idea of taxing vacant apartments. Improving tax collection could provide the city with financial space to relieve pressure on vulnerable groups.
At the federal level, the report holds the central government largely responsible for its failure to reform the property tax Grundsteuer, which is still calculated based on outdated values that are much lower than actual market values. The newspaper mentioned that the ÖVP party's rejection of this reform — despite the support of its representatives in the Gemeindebund — deprives municipalities, especially Vienna, of a vital source of income that could have reduced the need for these cuts.
The newspaper concludes that the SPÖ party finds itself today forced to defend policies that weaken the incomes of the less fortunate and affect its political credibility, while the federal government has made little progress on tax reform, leaving cities without the financial tools necessary to achieve a fairer distribution of burdens.