AUSTRIA: Chancellor Pledges Additional EUR1bn To Flood Fund

Chancellor Karl Nehammer has pledged a EUR1bn increase to the federal catastrophe fund to assist with alleviating the impact of the massive floods that have struck Austria and other central European states in the wake of Storm Boris. Nehammer also confirms that companies that were severely affected by the floods can postpone tax payments. 

• In his post on X, Nehammer also says "Austria will try to see whether the EU Solidarity Fund can be activated and whether financial support from Brussels is possible".
• Nehammer: "Interest-free loans can be used for companies that have been affected. Up to 100 million euros are available for this purpose. Guarantees can also be claimed."
• With the federal election just under two weeks away on 29 September the gov'ts response to the floods could yet have a notable impact on the outcome. Nehammer's centre-right Austrian People's Party (OVP) has trailed the far-right nationalist Freedom Party (FPO) for two years. However, an effective disaster response could provide a boost to the OVP ahead of the vote.
• Alternatively, should the response be deemed to fall short it could further damage support for the government (OVP and environmentalist Greens). Indeed, in neighbouring Germany, a poor response to flooding in North Rhine-Westphalia, combined with perceptions of inappropriate laughter on visits to flood sites, was seen to contribute to then-CDU candidate Armin Laschet's defeat to Olaf Scholz's Social Democrats in the 2021 election.