Dealing with subsidies

Super election year: ACA head appeals to political parties

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02.02.2024 12:52

Court of Audit President Margit Kraker calls on the parties to be "modest" in the upcoming election year. Party funding in Austria is "traditionally high", said Kraker in a podcast by the Austrian Court of Audit (ACA). This is especially true when compared to other European countries, such as Germany.

The fact that funding is automatically valorized also leads to even more discussions. "But what is important - and this is particularly important in an election year - is that all social groups and all areas should practice modesty," says Kraker. "And that would also be good for the political parties in Austria."

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But what is important - and this is particularly important in an election year - is that all social groups and all sectors should practice modesty.

Rechnungshof-Präsidentin Margit Kraker

Domestic politics allowed itself a significant plus in the previous year
Despite record inflation, federal and provincial spending on party funding rose sharply in the previous year. In total, parties, parliamentary clubs and political academies received 237.4 million euros.

How is money distributed?
Which party receives how much depends on the election results in the respective federal state or in the National Council elections. This means that success at the ballot box also brings the parties more money from the state. The FPÖ was able to benefit from this last year, with strong gains in the state elections in Lower Austria and Salzburg and slight gains in Carinthia.

As a rule, party funding increases in line with inflation, while club funding increases in line with civil servants' salaries. In detail, however, the rules of the federal states differ significantly. The funds paid out in Vienna rose particularly sharply in the previous year. The capital had largely frozen its funding in 2021 and 2022. In 2023, the sum from party, club and academy funding rose by eleven percent to 46.4 million euros.

Election campaign costs could be capped at 8.6 million euros
Since 2020, the campaign cost limit has also been continuously adjusted in line with inflation. In 2022, it reached 7.4 million euros. Due to the current high inflation, there was a significant jump of 8.5 percent to over eight million euros last year. A further valorization is due before the National Council elections in autumn. There could be an election campaign cost limit of 8.6 million euros.

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