The Federal Council unanimously gives the go-ahead for easier access to credit for older people

State chamber also for the school law package, amendment to the law on finds and changes in the penal code

Vienna (PK) – From May it will be easier for older people to get a loan. Corresponding changes in the Mortgage and Real Estate Credit Act cleared the last parliamentary hurdle in the Bundesrat today. In the future, loans can therefore also be granted independently of life expectancy, provided that the outstanding amount is covered by assets.

The state chamber also passed a change in the penal code. This introduces a new offense for “terrorist threats”. There was also approval for the 2023 amendment to the law on finds, which allows finders to keep objects worth up to €100 after just six months if the owner does not contact them.

A school law package, including quality assurance for home education, was also approved by the federal councillors.

Furthermore, the Chamber of States had EU framework agreements with Malaysia and Thailand and Austria’s objections to the accession of Pakistan and Senegal to the Hague Legalization Convention for approval. Austria will withdraw its objection to the certification agreement with the Philippines due to improved document security. The EU work programs for 2023 from the Ministry of Foreign Affairs and the Department of Justice were also on the agenda.

Access to credit for older people is made easier

Lending to older people should also be possible in the future if the intended term exceeds the average life expectancy of consumers. Appropriate changes to the Mortgage and Real Estate Credit Act, which the Federal Council unanimously approved, are intended to set an example against age discrimination. Lending should be possible if the assets “sufficiently guarantee that the outstanding (residual) amount will be covered”. At the same time, it must be probable that the customer will be able to meet the ongoing obligations under the loan agreement during their lifetime. The change in the law also provides clear regulations for inheritance.

The Federal Councilors unanimously endorsed the amendment as a step against discrimination against older people. Age discrimination is more widespread than one would think, said Elisabeth Kittl (Greens/W). Age does not mean dementia or helplessness at the same time. Rather, society ascribes this to older people and thereby drives them into unnecessary dependency. According to Kittl, this has also been the case with lending so far. She was pleased that the present amendment is a step towards more self-determination and less discrimination.

Klara Neurauter (ÖVP/T) also described the change in the law as an important step towards equality and fairness for older people. She recalled that the Seniors’ Association had long advocated such an amendment.

Elisabeth Grossmann (SPÖ/St) also stated that this change required many applications that had been postponed for years. According to Grossmann, her group in particular has repeatedly campaigned for this. The Federal Councilor was pleased that a “serious relic of age discrimination” was finally being eliminated. In her view, however, there are other such relics, such as the fact that banking transactions can only be carried out digitally these days.

Andreas Arthur Spanring (FPÖ/Lower Austria) also described the change as the right step. From his point of view, however, politics had already failed in 2015 when implementing the corresponding EU directive. Spanring recalled that a red-black government was in office at the time. In any case, it is clear to his group that nothing should stand in the way of lending to older people, as long as they are fully legally competent and can provide appropriate collateral.

Justice Minister Alma Zadić was “extremely pleased” with the unanimous endorsement of the amendment. It was unacceptable that older people with sufficient collateral did not receive loans. For Zadić, the change in the law is a very important regulation that has finally been brought about.

Green light for further National Council resolutions

The State Chamber also unanimously gave the go-ahead for an amendment to the Criminal Code (StGB), which introduces a new offense for “terrorist threats” in Section 278c of the Penal Code in the area of ”terrorist offences”. This clarifies that all intentional threats with “terrorist aptness” can be punished with imprisonment from six months to five years.

The Federal Council also unanimously approved the 2023 amendment to the law on finds. It allows finders to keep objects worth up to €100 after six months if the owner does not contact them.

A school law package cleared the last parliamentary hurdle with a majority of votes. One of the aims of the school law package is to ensure the quality of home education. For example, the reflective discussions relevant to checking the performance level are to be extended to the pre-school level for home lessons. In addition, the parents must submit a pedagogical concept to the education departments and announce the location at which home lessons are to take place.

Other changes are to ensure the quality of training and teaching for nursing assistant professions and to determine language skills through MIKA-D tests, which must be carried out at least once at the end of each semester. In the National Council session, the deputies also unanimously passed a resolution aimed at teaching first-aid skills in schools. Another point of the collective amendment relates to the extension of a COVID-19 special provision until the end of the 2024/25 winter semester. It is intended to cushion adverse effects on a specific group of recipients of study grants.

EU framework agreement and Austria’s objections to the Hague Legalization Convention

The framework agreements with Malaysia and Thailand were also accepted by a majority. The aim of the agreements is to create an appropriate framework for intensified political dialogue between the EU and the two Southeast Asian countries and to promote trade and investment on advanced environmental and sustainability criteria.

Austria’s objections to Pakistan’s and Senegal’s accession to the Hague Legalization Convention received unanimous approval. Due to deficiencies in the document system, corruption cannot be ruled out, according to the concerns about exempting foreign public documents from certification.

With regard to the certification of public documents between Austria and the Philippines, Austria will withdraw its objection to the Republic of the Philippines joining the Hague Certification Convention because document security has improved. The corresponding declaration was approved by a majority of the Federal Councillors.

Outlook on EU projects in the areas of foreign affairs and justice

The EU work programs for 2023 from the Ministry of Foreign Affairs and the Department of Justice were also on the agenda. Foreign Minister Alexander Schallenberg reports in the EU annual preview, which was acknowledged by a majority today, on the current status and the Austrian position on the war in Ukraine, on migration and energy policy as well as other foreign policy issues. In view of the Russian war of aggression, Austria fully supports both the EU solidarity payments for Ukraine and the EU sanctions packages against Russia and Belarus, the report states, among other things.

In the EU plan report presented by Justice Minister Alma Zadić, particular importance is attached to combating hate crime, environmental crime and corruption. The report, which the majority of the chambers of states took note of, is also of particular relevance for the Ministry of Justice of the announcement of resolute action against all forms of terrorism, radicalization and violent extremism as well as the efforts to better protect the victims of terrorism. (Federal Council continued) kar/mbu/sox

NOTE: Meetings of the National Council and the Federal Council can also be followed via live stream and are available as video-on-demand in Parliament’s media library.