Austrian Chancellor Alexander Schallenberg. AP
Austrian Chancellor Alexander Schallenberg. AP
Austrian Chancellor Alexander Schallenberg. AP
Austrian Chancellor Alexander Schallenberg. AP

Austrian chancellor stepping down after strongman Kurz quits politics


Soraya Ebrahimi
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Austrian Chancellor Alexander Schallenberg is stepping down to make way for whoever takes over as leader of his conservative party, he said on Thursday, hours after party strongman Sebastian Kurz said he was leaving politics altogether.

Mr Kurz stunned Austria and left a power vacuum in his People's Party (OVP) with his announcement.

He had quit as chancellor in October at the behest of his coalition partner, the Greens, after prosecutors opened a corruption inquiry, although he remained party head and a member of Parliament.

Mr Schallenberg, a career diplomat, has been in the job for less than two months since taking over from Mr Kurz.

Austrian media have reported that Interior Minister Karl Nehammer, an enforcer of Mr Kurz's hard line on immigration, is most likely to become party leader and chancellor when the OVP leadership meets on Friday.

"I firmly believe that both positions – head of government and leader of the Austrian party with the most votes – should soon once again be held by the same person," Mr Schallenberg said, adding that he did not want to be party leader.

"I am therefore making my post as chancellor available as soon as the relevant course has been set within the party."

Mr Schallenberg has been accused of being Mr Kurz's puppet, and of holding the country's leadership only until his political master clears his name.

Mr Kurz, 35, is one of 10 people suspected of varying degrees of breach of trust, corruption and bribery.

Prosecutors claim public funds were used to secretly commission manipulated polling that was published to help Mr Kurz become party leader and then chancellor in 2017. He denies wrongdoing.

Mr Kurz took much of his party by surprise on Thursday morning by announcing he was leaving politics.

One of his closest political allies, Finance Minister Gernot Bluemel, later said that he was also quitting politics, making a large Cabinet reshuffle more likely.

Mr Kurz has been the dominant and most polarising figure of Austrian politics since 2017, winning a parliamentary election and forming a coalition with the far-right Freedom Party (FPO).

"I am neither a saint nor a criminal," he said in his announcement.

Mr Kurz said he felt "hunted" because of criticism during his time as chancellor. He has most recently come under fire for not doing more to prevent the latest wave of Covid-19 infections, which led to the current national lockdown.

  • A cyclist rides along an almost deserted street in Vienna, the Austrian capital. Austria began a nationwide lockdown on Monday to address soaring numbers of coronavirus infections. AP
    A cyclist rides along an almost deserted street in Vienna, the Austrian capital. Austria began a nationwide lockdown on Monday to address soaring numbers of coronavirus infections. AP
  • Empty tables at a closed restaurant near St Stephen's Cathedral, a major tourist attraction in Vienna. Reuters
    Empty tables at a closed restaurant near St Stephen's Cathedral, a major tourist attraction in Vienna. Reuters
  • Police officers at a checkpoint at the German-Austrian border in Salzburg talk to motorists as a nationwide coronavirus lockdown takes effect in Austria. Germany is also looking at its precautions. Reuters
    Police officers at a checkpoint at the German-Austrian border in Salzburg talk to motorists as a nationwide coronavirus lockdown takes effect in Austria. Germany is also looking at its precautions. Reuters
  • Pedestrians pass a police vehicle at the Hofburg in Vienna's Michaelerplatz. Austria's nine million population was under a lockdown as of Monday. AP Photo
    Pedestrians pass a police vehicle at the Hofburg in Vienna's Michaelerplatz. Austria's nine million population was under a lockdown as of Monday. AP Photo
  • Protesters at the federal chancellery building in Vienna wear masks depicting political leaders. They hold signs that read 'I am a pandemic failure.' AP
    Protesters at the federal chancellery building in Vienna wear masks depicting political leaders. They hold signs that read 'I am a pandemic failure.' AP
  • Monday morning in Vienna, Austria, and a sole pedestrian is out as coronavirus lockdown regulations take effect. AP Photo
    Monday morning in Vienna, Austria, and a sole pedestrian is out as coronavirus lockdown regulations take effect. AP Photo
  • Tables and chairs at a cafe in the Austrian city of Salzburg, on the border with Germany, are stacked on Monday as the coronavirus lockdown begins. Reuters
    Tables and chairs at a cafe in the Austrian city of Salzburg, on the border with Germany, are stacked on Monday as the coronavirus lockdown begins. Reuters
  • Quiet descends in Vienna city centre on Monday as Austrians face the first of a 20-day nationwide lockdown to tackle the coronavirus. AP
    Quiet descends in Vienna city centre on Monday as Austrians face the first of a 20-day nationwide lockdown to tackle the coronavirus. AP
  • A pedestrian and child pass a statue of Archduke Karl in the Heldenplatz, Vienna, on Monday, the first day of Austria's 20-day coronavirus lockdown. AP
    A pedestrian and child pass a statue of Archduke Karl in the Heldenplatz, Vienna, on Monday, the first day of Austria's 20-day coronavirus lockdown. AP
  • A Christmas market in Salzburg is closed on day one of Austria's coronavirus lockdown. Reuters
    A Christmas market in Salzburg is closed on day one of Austria's coronavirus lockdown. Reuters

He led his party in two parliamentary elections, in 2017 and 2019, becoming chancellor after both.

But Mr Kurz's time in government was mired in scandals including the corruption investigation and his dismissal by Parliament in 2019 after the leader of the FPO, Heinz-Christian Strache, was caught on video allegedly trying to fix state contracts.

The OVP is one of the main traditional parties in Austria but has recently been built around Mr Kurz, leaving no obvious choice to succeed him.

Most polls showed the OVP had a lead of at least 10 points over its nearest rival, the opposition Social Democrats, until Mr Kurz was placed under investigation in October.

Polls now show the two parties neck and neck.

At the same time, a snap election is unlikely as the latest polling suggest the OVP and the Greens would probably lose seats. This Parliament is due to last until autumn 2023.

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Tips on buying property during a pandemic

Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.

While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.

While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar. 

Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.

Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.

Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities. 

Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong. 

Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.

Updated: December 02, 2021, 10:07 PM