Storm Crisis Sparks $1 Billion Surge in Disaster Relief Fund

The day before, the badly affected Lower Austria received initial aid, with 45 million euros coming from the disaster fund. The fund itself will be increased to 1 billion euros, announced Chancellor Karl Nehammer (ÖVP) and Vice Chancellor Werner Kogler (Greens) on Wednesday. Nehammer again spoke out against “doomsday scenarios”.

The government said that the increase in the disaster fund was intended to help those affected quickly and without red tape. Damage caused by private individuals and companies would be compensated, and funds would also be made available for damaged infrastructure in municipalities and federal states. Advances would also be granted. The fund has so far amounted to 620 million euros, of which 300 million have not yet been used, the Chancellor’s Office told APA in response to an inquiry. The aid will be processed through the municipalities.

“Living umbrella” increased

The “housing umbrella” will also be increased by an additional 40 million euros to help affected households. This is intended to be particularly effective in hardship cases in which people cannot use their living space. The Ministry of Social Affairs said that people at risk of poverty will be supported with a lump sum if, for example, they have to rent an alternative apartment or move to a hotel. The housing umbrella will step in if other benefits from the federal government, the states, the municipalities or from the disaster fund are not sufficient.

The amount of the lump sum will be determined in the coming days in the guidelines of the Ministry of Social Affairs. It is available to both tenants and owners of damaged apartments or houses. In order to ensure social accuracy, the entitlement is limited to households with low incomes, which is based on the poverty risk threshold. It is currently 1,572 euros per month for people living alone and 2,358 euros for a two-person household.

10 million euro emergency aid package

Costs related to flood damage can be claimed as tax deductions by private individuals and businesses, the government reminded of existing options. Special (interest-free) loans and guarantees will be made available to affected companies so that rapid liquidity can be ensured. A total loan volume of up to 100 million euros is planned here. Affected companies will be able to take out these interest-free loans using the ERP fund’s instruments to finance replacement investments, announced Economics Minister Martin Kocher (ÖVP). Processing will be carried out by the ERP trust banks, and in the case of funding applications from the tourism and leisure industries, by the Austrian Hotel and Tourism Bank GmbH (OeHT).

There will also be a disaster short-time work scheme: companies affected by a longer plant closure will be able to temporarily register their employees for short-time work.

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In order to repair immediate damage to flood protection, a 10 million euro emergency aid package is planned for the renovation of corresponding facilities and dams – also from the disaster fund, as Agriculture Minister Norbert Totschnig (ÖVP) specified in a press release. In total, up to around 1 billion euros are to be invested in flood protection in the coming years (2024-2027).

Activation of the EU Solidarity Fund is being examined

The Ministry of Finance has summarised the most important key points regarding tax relief in connection with the floods in an information sheet, this is available onlineThose affected have the opportunity to apply for extensions and relief on payments. Donations, new clothing, vehicles and computers can be partially deducted from taxes, said Economics Minister Magnus Brunner (ÖVP) in a press release.

Nehammer also said that contact had already been made with affected neighbouring countries and the EU Commission to examine the activation of the EU Solidarity Fund.

At the press conference, both the Chancellor and the Vice Chancellor once again thanked all helpers and emergency services for their assistance. He also wanted to reassure everyone affected “that we are doing everything in our power to mitigate the consequences,” said Nehammer.

“I am still against doomsday scenarios”

When asked about his earlier – sometimes sharply criticized – statements that he was against “doomsday scenarios” on climate issues, Nehammer said that this was because “I don’t believe in doomsday scenarios per se.” Climate change can only be tackled with innovation and drive, he said, referring to Holland, for example, which lies one meter below sea level. “I am still against doomsday scenarios,” because nothing productive comes from fear, but rather “creative power” is needed.

“It is a fact that climate change is progressing, it has been for a long time, the crucial question is: how do we protect ourselves from it?” A “global” approach is needed here, and Nehammer wants to “export Austrian know-how in climate protection”. He also stressed that the fact is that once a certain amount of rain has been received, the soil can no longer absorb the water. Therefore, retention basins and dams must be built. His party is not fundamentally against renaturation, he said, but they have spoken out against the approach from Brussels.

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Global warming “undisputed”

Vice Chancellor Kogler said it was true that the soil would eventually become saturated with water. But it made a huge difference for the areas that were “concreted” “because nothing would run in there.” “I believe that we should start everywhere and proceed more cautiously in the future.” The flood disaster was “a good opportunity for the future to organize things better in the future. Anything that doesn’t have to be built on is an advantage.”

The Green Party leader stressed that combating climate change must be seen as an economic opportunity. Global warming is “undisputed” and he does not know who would deny this “apart from some blue-winged conspiracy theorists”. Dams should be built where necessary. But where possible, nature should be given space, because this is precisely what offers the best protection in extreme weather events.

Better coordination of flood protection measures

The Chancellor will travel to Poland tomorrow evening for a flood summit. Polish Prime Minister Donald Tusk has invited the heads of government of the affected countries to this summit, where they will discuss protective measures and reconstruction. In addition to the heads of government of the affected states, Commission President Ursula von der Leyen will also attend. “We must use and expand the instruments that were created for disasters like this. I will call for the activation of the EU Civil Protection Mechanism in Poland,” said the Chancellor.

“Austria is making a major contribution to the EU, and now it needs the EU’s targeted aid programs, which were developed specifically for natural disasters, to help the affected countries rebuild. We will also talk about even better coordination of flood protection measures. Storms do not stop at national borders, and it is important to strengthen cooperation between states in flood protection.”

This article was updated at 1:12 p.m.

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