Appointment

On 15 October 2017, Kurz and his party emerged as victorious from the 2017 legislative election, receiving 1,595,526 votes (31.5%) in the popular vote and thus gaining 15 additional seats, and thereby a plurality, in the Parliament. As the leader of the party with the most seats after the election, Kurz was charged with the formation of a new cabinet by President Alexander Van der Bellen. Since he did not obtain an absolute majority in parliament, Kurz decided to look out for a coalition partner to ensure one. The search turned out rather quick and the ÖVP entered negotiations with the right-wing to far-right FPÖ on 25 October. Negotiations concluded successfully on 15 December and the incoming coalition presented its ministers list^{[lower-alpha 1]} to the President. Van der Bellen assented and the Kurz cabinet was sworn in on 18 December 2017.^[91]

Cabinet composition

Under his first cabinet, Kurz received the chancellorship and five ministries, while the FPÖ received the vice chancellorship and six ministries.^[92]

It became the first cabinet with FPÖ participation in more than 10 years and – following the Ibiza affair – the first with technocratic participation in more than 90 years.^[93] It was succeeded by the first only-technocratic cabinet in Austrian history. Additionally, Herbert Kickl became the first minister to be removed from office against their will as well as the first person serving as party leader to be excluded from re-appointment by a president.^[94][95]

End of term

On 17 May 2019, the Ibiza affair came to public light. The scandal involved Vice Chancellor and FPÖ chairman Heinz-Christian Strache and FPÖ deputy chair Johann Gudenus, who were offered political support by a woman posing as the niece of Russian oligarch Igor Makarov. The incident was recorded on camera and later published by the Süddeutsche Zeitung and Der Spiegel. The video tape showcased the openness of Strache and Gudenus to engage in corruption, their willingness to violate Austrian campaign finance law, and their aspiration to bring nonpartisan news outlets under their control.^[96][97][98]

The revelation swiftly led to national and international condemnation. The following day both Strache and Gudenus resigned from all positions. Kurz supported keeping the cabinet on the condition that Herbert Kickl be replaced.^{[99][100][101]} As Interior Minister, Kickl (a member of the FPÖ) would have overseen the investigation into Strache and Gudenus. Additionally, following the revelation, Kickl quickly moved to appoint his close ally, Peter Goldgruber, director general for Public Security – the supreme authority of Austrian law enforcement – thus causing further controversy and public concern. The FPÖ rejected Kurz ultimatum. As a result, Kurz suspended the coalition agreement and asked President Van der Bellen to remove Kickl from office; the president assented.^{[102][103][104]} Following Kickl's removal, the remaining FPÖ ministers tendered their resignation, formally ending the coalition.^{[105][106][107]} Kurz filled the vacancies they left with technocrats.^[93]

By ending the coalition, Kurz no longer commanded a majority in Parliament.^[108] On 27 May, the SPÖ became the first party to officially introduce a motion of no confidence against the entire cabinet (including Kurz).^[109][110] With the concurrence of JETZT and the FPÖ, the resolution received sufficient support to pass.^{[111][112][113][114]} In the history of Austrian republicanism, it was the first motion of no confidence against a chancellor and the entire cabinet to be successful.^[115] The next day, the president officially removed all cabinet members from office; although everyone, except for Kurz, was immediately re-appointed to serve in an acting capacity.^[116] Finance Minister Hartwig Löger succeeded Kurz and served until he was replaced by Brigitte Bierlein and a caretaker cabinet less than a week later.^[117][118]

Appointment

In September 2019, the ÖVP won the 2019 legislative election in a landslide, receiving 1,789,417 votes and 37.5% of the total valid votes cast, enough for a wide plurality in the Parliament.^[119][120] Consequently, Kurz picked up an additional nine seats in parliament. It is the second consecutive election that the ÖVP emerged as the clear winner. As a result of the election, Kurz was again tasked with the formation of a new cabinet by President Alexander Van der Bellen on 7 October.^[121] Throughout October, Kurz held several exploratory meetings with the SPÖ, the FPÖ, NEOS, and the Green Party, which had experienced a grand comeback in the 2019 legislative election, after having dropped out of the Parliament following the 2017 election, and excluding the JETZT party, which failed to secure a minimum of 4 seats to obtain parliamentary representation. On 11 November, Kurz announced that the ÖVP would enter into coalition negotiations with the Green Party.^[122]

At the end of December it was reported that coalition negotiations had concluded successfully. The program for the new cabinet was introduced to the general public on 2 January 2020.^[123][124] The executive board of the ÖVP approved the coalition agreement the next day, the Green Party federal congress followed on 4 January.^[125][126]

Kurz was sworn in as Chancellor by President Van der Bellen on 7 January 2020 at 10:00 UTC.^{[lower-alpha 2]}

Cabinet composition

Under his second cabinet, Kurz received the chancellorship and eight ministries, while the Green party received the vice chancellorship and four ministries.^[127]

The second cabinet comprised significantly more partisan appointees and Kurz loyalists – e.g. both Blümel and Nehammer previously served as ÖVP general secretaries – than the first one. It was also the first cabinet in Austrian history that included the Green party and the first one with a predominantly female membership.^[128]

End of term

On 6 October 2021, agents of the Central Prosecutorial Agency for Corruption and Economic Affairs (WKStA) raided the Federal Chancellery and the headquarters of the ÖVP as part of a corruption probe targeting Kurz and his "inner circle".^[129] Prosecutors allege that Kurz bribed news outlets in 2016 to make anti-Reinhold Mitterlehner propaganda. The bribery scheme aimed at ousting Mitterlehner who served as then-vice chancellor and chair of the ÖVP, so Kurz could take his place. In addition, the WKStA accused Kurz of misappropriating tax payer money, as bribes were allegedly diverted from Finance Ministry funds.^[130]

Following the raid, opposition parties unanimously demanded Kurz' resignation and called a special session of the Parliament to vote on a motion of no confidence. The Greens pondered supporting the motion if Kurz was unwilling to voluntarily step down but were also supportive of continuing the coalition cabinet if Kurz was replaced.^[131] On 9 October 2021, Kurz resigned the chancellorship but announced his intentions to remain party chairman and assume direct leadership of the party in the Parliament.^{[132][133][134][135]} The Greens accepted Kurz' bargain, while opposition parties strongly condemned the move and said that Kurz would continue "pulling the strings".

On 11 October 2021, at 11:00 UTC,^{[lower-alpha 3]} President Alexander Van der Bellen officially removed Kurz from office and appointed his nominee then-Foreign Minister Alexander Schallenberg chancellor of Austria.^{[136][137][138]}

Family Bonus Plus Act

The Family Bonus Plus table

In June 2018, Kurz introduced a social security reform package termed the Family Bonus Plus Act, which was passed by the Parliament in July and became effective in January 2019. The act offers annual income tax deductions for parents up to €1,500 per under aged child (€125 per month) and €500 per of age child. The act only affects parents who already receive child benefits from the government. If at least one parent has a monthly net income of €1,350, parents become eligible for the maximum deductible amount of €1,500 per anum. The minimum deductible amount is €250 and can be claimed by every employed single parent, regardless of their monthly income; unemployed parents are ineligible for deductions.^[169][170]

Additionally, the Family Bonus Plus Act supersedes multiple other child benefit programs, such as the Child Tax Credit which offered €600 and €440 direct grants, to couples and single parents respectively; as well as the Childcare Expenses Mitigation Program which offered parents €2,300 annually per child younger than 10 years old.^[171][172]

The SPÖ and welfare advocates starkly condemned the reform package for "solely benefiting the well off and completely omitting the low earners and unemployed".^[173][174]

Social Security Act

In November 2018, the Cabinet completed drafting a major overhaul bill – affecting the basic income and unemployment insurance laws – known as the Social Security Act. Parliament enacted the bill in March 2019 and it took effect the following month. The act 'federalizes' the basic income; it sets the fundamental rules and minimum standards, while authorizing state governments to create local ordinances that regulate the details.^{[175][176][177]}

The Social Security Act introduces a nationwide basic income ceiling at €863.04 monthly for singles and €1,208.26 monthly for couples. Under the act, parents receive a complementary €215 for their first child, €129 for their second one, and €43 from the third one onward. Foreigners now become eligible for the basic income after a registered five-years stay in Austria or if they previously served as employers. Immigrants with a meager understanding of the German language now receive a reduced basic income of €563 per month; Kurz argued that the difference of €300 would pay for their German language classes. Immigrants that improve their language skills to German level B1 or English level C1 become qualified for the ordinary basic income. Furthermore, all recipients (except for the permanently unemployable) now have to re-apply for the basic income on an annual basis.^{[178][179][180]}

Social Insurance Reform Act

On 13 December 2018, as part of Kurz's campaign promise to modernize Austrian public administration, Parliament enacted a major social insurance overhaul bill introduced by his cabinet; the Social Insurance Reform Act. The bill attempts to wind down redundant bureaucratic processes by merging social insurers, laying off "superfluous functionaries", and modernizing workplaces. Kurz explained that "centralizing the social insurance system will considerably benefit the insured".Implementation began in April 2019, under the supervision of an ad hoc subcommittee of Parliament, and concluded in 2020, rendering the act fully effective.^{[181][182][183]}

Austria has a national, publicly-funded health system. Although health insurance was always national, the system was originally administered by state-level insurers.^[184]

The act merges

• the state-level general and specialised insurances into a federalized, single-payer healthcare system (ÖGK),
• the Social Insurance for Commerce (SVA) with the Social Insurance for Agriculture (SVB), to form the Social Insurance of the Self-employed and Freelancers (SVS),
• the Accident Insurance of Public Servants, Accident Insurance for Railroads and Mining, and the Viennese Health Insurance for Public Transport into the Accident Insurance for Public Servants, Railroads and Mining.

The Government Pension Fund (PVA) and the General Accident Insurance (AUVA) remain unchanged. While the Social Insurance Association, which oversees all social insurances, was disempowered and cut down.^[185]

All opposition parties, the chairman of the Social Insurance Association and various insurance and welfare experts decried the changes, commenting "the bill would not centralize but decentralize and harm an effective and perfectly functional system, and are hence disadvantageous to the insured". The mergers cost the government approximately €300 to €400 million.^[186]

Compulsory German language classes

On 16 May 2018, the Kurz cabinet enacted compulsory German language classes in the Parliament.^[190][191]

As of 1 January 2019, all primary (Volksschule) and secondary schools (Hauptschule, Gymnasium) are legally required to establish mandatory German language classes (which deviate from regular classes) for children lacking a knowledge of the German language, denoted "extraordinary students"; however, such classes are only arranged in a school which has a minimum of eight such pupils. Extraordinary students are identified by a nationwide test (administered by the principal) when they register at the school, or when they enter the school during the school year and are new to Austria. Further ministerial tests each semester would assess their language. When tests assess them as having an "insufficient" knowledge of the German language, pupils are obliged to attend German language classes for fifteen hours per week in primary schools and twenty hours per week in secondary schools. Extraordinary students are to attend these classes for up to a maximum of four semesters or until such ltime as they are reassessed as having reached an "inadequate" knowledge of the German language. Such students would attend subjects such as drawing, music, gymnastics and handicrafts along with their original regular class.^[192][193]

The new law replaced a previous Act, which had allowed pupils to voluntarily attend German language classes for eleven hours per week. Cabinet argued that the previous law was not effective enough in achieving the results desired. The new initiative faced great opposition from schools, their representatives and the opposition parties. Opponents argued that schools in Vienna alone would require 500 additional rooms. Other objections raised were that "extraordinary students" might face discrimination, that many teachers did not have the necessary training, that costs of implementation would be considerable and that all "extraordinary students" would be taught in the same class regardless of their age, thus preventing efficient learning.^{[194][195][196]}

Child Benefits for Foreigners Reform Act

In October 2018, the Kurz cabinet passed the Child Benefits for Foreigners Reform Act. The bill affects foreign citizens of the European Union (EU) that are employed in Austria, but whose children reside in their home country. The act adjusts child benefits received by these foreign workers to the local price level of their home country. Civil workers – such as nurses – are especially pertained by the changes.^[197][198]

The European Commission decried the bill and reminded that EU laws expressly disallowed favoring domestic workers over European foreign. The commission announced its intention to file a civil suit against Austria in the European Court of Justice.^{[199][200][201]}

Global Compact for Migration

On 31 October 2018, Kurz declared that Austria would not join the Global Compact for Migration, claiming it would encroach on the country's sovereignty and fail to demarcate illegal (economic migration) from legal immigration (asylum).^{[202][203][204][205][206][207]}

Working Hours Reform Act

In July 2018, the Kurz cabinet passed an amendment to the working time law (Arbeitszeitgesetz) in the Parliament, which has commonly been referred to as the "12 hour work day" (12-Stunden-Arbeitstag). Cabinet skipped the common assessment process (Begutachtungsprozess) for the amendment. The average work time in Austria was eight hours per day, the amendment extended the maximum work time of ten hours per day to twelve hours, and the fifty hours work time per week to sixty hours. Chancellor Kurz and his cabinet commented the changes with "legally allowing employees to work more a day on a voluntary basis. In theory, employees could legally decline an employer's request to work longer.^{[212][213][214]}

Prior to the amendment it has only been possible to work longer than ten hours per day in certain circumstances and with the explicit assent of the works council. Supporters of these changes have been the Economic Chamber and the Federation of Industries. Opponents on the other side, have been the SPÖ, the Peter Pilz List, the Chamber for Workers and Employees, and the Trade Union Federation. Opponents have raised strong concerns regarding the amendment, doubting that an appliance of the "voluntary basis" is actually possible in practice, since they expect the employer to dismiss a denial of the employee to work longer and threaten them with suspension and discharge.^{[215][216][217][218][219]}

Monitoring compact

In April 2018, the coalition enacted the monitoring compact, officially titled security compact. The ÖVP already attempted to pass such a law in the previous legislative period, but failed since their bill presented before the Parliament was rejected by all other parties, including their current and former coalition partner.^[220][221]

The compact allows for authorities to monitor messenger services, such as WhatsApp and Skype, of a person that has committed a crime punishable with a maximum of ten years imprisonment, or five years when life and sexual integrity are endangered, or is suspected of being a potential terrorist. With the new compact, authorities would be empowered to order telecommunication companies to save a person's data up to one year if they are suspected of committing a specific crime. Should the initial suspicion not be substantiated throughout the investigation, then authorities' directive to store data would turn void and the surveillance target must be informed of their investigation. Furthermore, the optical and acoustic surveillance in the public are also planned to be expanded, and authorities would be able to access the video and audio surveillance of government-operated or funded organisations, such as public transportation services, airports, and railway stations, which are obliged to store recordings for a tenure of four weeks. The license plate recognition systems (Kennzeichenerkennungssysteme) are also intended to be advanced, with them being able to detect the driver, license plate, type and color of any car. IMSI-catchers used by the police would be able to localise phones without contacting the respective telecommunication company. Anonymous prepaid cards would no longer be available and only sim cards would remain, which require one to register their identity.^[222][223]

The compact would stand for five years and be evaluated after three years. Jurists, attorneys, the Constitutional Service and many others, have expressed their strong concerns regarding the compact and have accused it of infringing the very basis of liberty. Both the SPÖ and NEOS have announced to file one-third petitions in parliament to trigger a lawsuit against the compact before the Constitutional Court; the SPÖ aims to introduce its petition in the Federal Council, where it already possesses one-thirds of the seats, while NEOS would introduce theirs in the Parliament, hoping for the support of the SPÖ to derive the remaining votes necessary.^[224][225]

Digital Office

On 19 March 2019, the Kurz cabinet presented the mobile application Digital Office for Android and IOS as well as the website oesterreich.gv.at; both platforms combine and centralize existing online services of government that allow for citizens to interact with authorities through the internet. While both are generally the same, the mobile app was labeled "more comfortable" by cabinet. The concept for both platforms was drafted by Margarete Schramböck, Minister of Digital Affairs, and subsequently developed by her ministry. Digitalizing government services and bureaucracy has been an election promise of Kurz. The services data.gv.at and help.gv.at were merged into the new platforms, although data.gv.at is intended to additional remain as an independent website. The new platforms currently allow users to:

• register a new, and cancel the current, main residence (Hauptwohnsitz);
• request certificates for newborn children;
• store passport pictures;
• receive an automatic notification when a passport's validity expires; and
• request a voting card (Wahlkarte) for an upcoming election.

Additional services are intended to be added that would allow users to:

• request a new passport (June);
• register and cancel side residences (Nebenwohnsitze) (June);
• file a loss report for certificates and other legal documents (June); and
• use the digital driving license (December, at the latest beginning 2020).

The digital driving license would for the moment only be usable domestically, since there are no European-wide regulations for such licenses. Registering for those platforms requires a mobile signature. There currently are more than 1,1 million registered mobile signatures.^{[226][227][228]}

Council of the European Union presidency

During Austria's presidency of the Council of the European Union, which lasted from July to December 2018, Kurz advocated for an increased protection of the Schengen Area and suggested that Frontex border guards should prevent any migrant boat from entering Europe.^{[229][230][231][232][233]}

The smoking ban

In March 2018, the Kurz cabinet repealed a general smoking ban enacted by its predecessor, the Kern cabinet, which was slated to take effect on 1 May 2018.^[234][235] The reversal was a long-standing campaign promise and policy objective of the FPÖ, which insisted that it be included in the coalition agreement and the official cabinet agenda. Despite publicly supporting the smoking ban, the ÖVP reluctantly voted for its repeal in Parliament as part of this bargain.

The reversal remains one of the most controversial acts of Kurz's first chancellorship, as his own and all opposition parties, a dozen gastronomy and health specialists, as well as the majority of Austrians opposed it.^[236]

The smoking ban would have completely prohibited the use of cigarettes in all coffee shops and restaurants, which had previously still been allowed within designated smoking areas.^[237] However, as part of the reversal bill, the Cabinet also illegalized the sale of tobacco to minors and disallowed smoking in cars if children are present.

Following the end of the smoking ban, an anti-smoking campaign known as "Don't smoke" became viral. The campaign's anti-smoking plebiscite – that would have forced Parliament to reconsider the reversal – garnered more than 880,000 votes, which made up 13.8% of Austria's population at the time, and was one of the most successful petitions in the country's history.^[238] Nevertheless, it fell just short of the 900,000 votes threshold, which had been raised by FPÖ party chairman and Vice Chancellor Heinz-Christian Strache beforehand. Strache received massive amounts of criticisms for that, as he had pledged to hear any petition that reaches a scanty 150,000 votes while still in opposition.^[239][240] A lawsuit against the repeal was filed with the Constitutional Court.^[241][242]

Following the collapse of the first Kurz cabinet, Parliament reinstated the smoking ban in July 2019; all parties, but the FPÖ, voted in favor.^[243]