The storms are over, but the suffering of many Austrians continues. The insurance companies expect record damage and the victims expect quick help. The first damage assessments have been made and some payments have already been made. How expensive the flood of horrors will be for us, how much money is already available and where we can possibly find more.
The major flooding in Austria is currently driving many of its compatriots to despair. Some of the property has been destroyed and the costs incurred are weighing heavily on the shoulders of those affected. According to the insurance association (VVO), damage of up to 600 to 700 million euros is expected. “In extreme cases, the billion mark could even be exceeded,” it is assumed. Efforts are being made to ensure “quick and unbureaucratic claims processing.”
But people are also doing their best in politics. As is known, the federal disaster fund was increased by 400 million euros to around one billion euros. In addition, Chancellor Karl Nehammer (ÖVP) traveled to Poland on Thursday, where he was promised 500 million euros in EU aid – thus increasing the aid money to 1.5 billion euros.
50 million euros for flood protection
In order to prevent similar disasters and the many tragic individual fates of this time in the future, the Ministry of Climate Protection is making 50 million euros available to expand natural flood protection. This is intended to support the renaturation of areas along rivers and streams. “The focus is still on cleaning up. But we also want to think about the future and take precautions,” said Minister of Climate Protection Leonore Gewessler (Greens).
This year the funding is awarded
The money will be awarded through an extraordinary funding round of the Biodiversity Fund. Gewessler’s department will quickly approach the Ministry of Finance for the necessary coordination: “Because every contribution to mitigating such disasters in the future is good. This is exactly what we will use this budget for.” The money comes from the budget of the Ministry of Climate Protection and will be released through redistributions. The first funding awards are even possible this year; corresponding projects can be financed up to 100 percent.
Sven Hergovich, the leader of the SPÖ state party in Lower Austria, sees even more potential. And of all the items in the budget of the politically controversial Corona Fund, which has not yet been exhausted. “It is now important to mobilize all financial reserves. After deducting the previous payments, there are still 26 million euros in the Corona Fund, which contains more than 31 million euros. This could almost double the disaster fund,” the red economist calculates. After all, 600,000 euros have already been paid out to the victims in Lower Austria.
How much money do private individuals receive?
The fact that, according to the key, the individuals affected by the storm are only allowed to receive 4.21 percent of the 1.5 billion euros in aid has worried the population in recent days. But one thing is clear: “This key does exist, but in practice it is hardly used. ‘As much is always paid out as necessary’, says the Ministry of Finance in response to a ‘Krone’ request. This is proven by figures from the flood in 2013; at that time, more than 4.21 percent already went to individuals.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
