Dispute with Bavaria

Craftsmen rage: Austria bonuses criticized again

The Munich and Upper Bavaria Chamber of Crafts has lodged a complaint with the EU Commission.

(Bild: Dan Race - stock.adobe.com)

Bonuses from Austria are once again causing trouble, this time in neighboring Bavaria. Craftsmen are furious about the bonus of the same name, because the subsidy for private individuals in Austria is a violation of the ban on state aid. According to the accusation, only companies based in Austria receive the money.

The Munich and Upper Bavaria Chamber of Skilled Crafts has therefore lodged a complaint with the EU Commission: "We see this as a hidden discrimination against our members and a preference for Austrian companies, as customers with this knowledge are more likely to hire a craftsman from Austria," argued Chamber Managing Director Frank Hüpers on Friday. "We have therefore lodged an official complaint with the European Commission for violation of the European ban on state aid."

The number of unreported cases is likely to be much higher
The chamber did not provide an exact figure for the companies affected. "There are initial cases in which craft businesses from Upper Bavaria and Lower Bavaria are specifically affected. This is another reason why we have taken action. So far, the number is manageable. However, the number of unreported cases is likely to be much higher, as not all of our tradespeople find out why they ultimately didn't get the order from Austria," says Hüpers.

According to Kocher, "in line with Union law"
Economics Minister Martin Kocher (ÖVP) has already commented on this: the craftsmen's bonus was set up by the federal government to stimulate the economy in the construction sector and support households. "In the course of its design, a detailed examination of state aid law was carried out by experts, among other things," emphasized Kocher. "This showed that subsidies under the craftsmen's bonus are in line with EU law," he said, pointing out that everything was legal.

As part of its design, a detailed examination of state aid law was carried out by experts. This showed that subsidies under the craftsmen's bonus are in line with Union law.

Wirtschaftsminister Martin Kocher (ÖVP)

Bild: APA/HELMUT FOHRINGER

300 million euros made available
A total of 300 million euros is available for the local bonus this year and next year. The craftsmen's bonus provides private households with a subsidy for work carried out in the home and living area. Up to 20 percent of the work costs can be reimbursed up to a maximum of EUR 2,000 this year - and then only EUR 1,500 in 2025 - per person and residential address. According to the Ministry, only one application (with several invoices if necessary) can be submitted per person and calendar year.

Funding amount of around 800 euros
The aim of the campaign is to strengthen the ailing construction industry on the one hand and to create an incentive for obtaining trade services on the other. According to the latest information from the federal government, the average amount of funding was around 800 euros.

This incident is also part of a series of recent allegations surrounding the repair bonus. The European Public Prosecutor's Office is investigating several companies that are alleged to have made false statements regarding the EU-funded "repair bonus" in order to obtain around 3.5 million euros. In a major raid in Austria involving over 230 police officers at the end of November, 37 properties were searched, 15 suspects arrested and seven others questioned.