Stocker defends welfare reform

Federal Chancellor Christian Stocker defended the Austrian government’s draft social welfare reform on Saturday, rejecting criticism from aid organizations that the measures would increase poverty. Speaking during the broadcast "Im Journal zu Gast" on public radio station O1, the leader of the People's Party stated that the proposed changes do not expand destitution. He provided specific financial projections for the first time, estimating that the reform will generate over 200 million euros annually for the national budget. This figure includes approximately 150 million euros in direct savings, with the remainder attributed to increased tax revenues resulting from higher labor participation under the new rules. The federal cabinet reached agreement on the legislation earlier this week after prolonged negotiations among the ruling coalition parties, including the Social Democratic Party and the Green-leaning NEOS party. The draft law, titled "Social Welfare New," was presented to the public on Thursday evening and sent into a three-week review process on Friday night. The government aims to pass the bill in the lower house of parliament before the end of November. The core of the reform targets able-bodied recipients by linking benefits to integration duties and active employment. For children, the system will introduce nationwide minimum and maximum benefit levels, though individual states retain some discretion within this corridor. Stocker addressed the sharp opposition from charitable groups such as Caritas and Diakonia directly. When asked if he considered their objections to be completely exaggerated, he affirmed that view. He argued that existing disparities in child welfare rates across different states did not correlate with higher rates of general or child poverty in those regions. Consequently, he maintained that the current structure does not inherently drive up poverty figures. The chancellor noted that while 2.9 percent of the population suffers from manifest poverty, the government has already implemented significant measures in this area. He emphasized that every person affected represents one too many, yet the proposed reform is not responsible for increasing that number. Social Minister Korinna Schumann had previously outlined a phased implementation timeline for the fiscal impacts. In an interview aired on Friday evening, she indicated that no savings would be realized in 2027 unless the regional governments executed the reforms exceptionally quickly. She projected savings of 188 million euros for 2028 and more than 237 million euros for 2029. Stocker’s Saturday comments aligned broadly with these long-term goals but focused on the immediate annual budget effectiveness exceeding the 200 million euro mark. He cited calculations completed since his previous statements, noting that the additional revenue stems from the slogan "Workbench instead of park bench," a phrase originally popularized by the governing party’s social policy spokesperson, August Woinger. The Chancellor also dismissed warnings from the Fiscal Council regarding insufficient counter-financing for other government initiatives, such as the reduction in food value-added tax and the future deposit program. Stocker asserted that the government is adhering to its planned deficit paths despite external forecasts predicting failure. He stated that he bears overall responsibility for the state, not just the budget deficit, requiring him to provide incentives for businesses during difficult economic periods. He claimed that recent legislative successes have disproven predictions that the administration would fail across all fronts. Furthermore, he rejected suggestions that internal political tensions or the recent leadership reshuffle within the Social Democrats had paralyzed the government, pointing to the advancement of both the future deposit and social welfare bills as evidence of functional cooperation. Opposition reactions were mixed. Freedom Party leader Herbert Kickl criticized the government for engaging in "rotten compromises" and "dirty deals" regarding social welfare and healthcare reforms. He described these agreements as the root cause of the country's precarious situation. Conversely, Stocker downplayed rising anxiety among regional leaders ahead of upcoming state elections in Tyrol, Upper Austria, and Lower Austria next year. He suggested that each region maintains distinct priorities and that tension should not be overstated. Regarding poor polling numbers for the government, Stocker explained that citizens need to feel tangible improvements in their daily lives. He justified symbolic policies, such as the ban on headscarves for children under fourteen in schools, as necessary signals demonstrating the government's commitment to fairness and fulfilling promises. The debate continues as the legal text undergoes formal scrutiny before parliamentary voting.