Coalition heads for a heated autumn over the proposed Future Depot

The coalition is heading into a heated autumn, with the ÖVP’s flagship Future Depot already running into resistance from Finance Minister Markus Marterbauer. The proposal would allow parents to invest up to €5,000 a year for their children without capital gains tax until they turn 18. It would also provide a €500 starting credit.

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Since it cannot be assumed that only two birth cohorts will benefit, sustainable financing is missing.

The finance ministry has questioned whether the plan can be financed sustainably. The budget currently includes only subsidies for two birth cohorts, with €40 million allocated to each. “Since it cannot be assumed that only two birth cohorts will benefit, sustainable financing is missing,” the ministry said. The capital gains tax exemption is also absent from the budget and would require additional funding.

Against that backdrop, the ministry considers a launch on Jan. 1, 2027, “technically practically impossible,” according to the Kronen Zeitung. ÖVP Europe Minister Claudia Bauer is pushing back. She said the date had been agreed within the coalition and remained achievable. “I assume that agreements within the federal government will also be honored,” Bauer said. She added that talks with banks showed strong interest and a desire to begin quickly.

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A launch on January 1, 2027, is technically practically impossible against this background.

Upper Austria Governor Thomas Stelzer, also from the ÖVP, wants the project to go further. He has called for withdrawals to remain tax-free when people use the money for retirement or to create a home. The proposal is unlikely to please either the ÖVP or NEOS, however, because Marterbauer wants to raise the necessary funds from the financial sector.

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I assume that agreements within the federal government will also be honored.

The Future Depot is not the only issue threatening agreement. Social Affairs Minister Korinna Schumann has circulated a draft for reorganizing welfare benefits, though she has not yet made it public. She said the reform would focus on fighting poverty, supporting children, and expanding in-kind assistance. The SPÖ’s campaign promise of a basic child allowance could form part of the new system. Schumann also said the government would pursue a constitutionally sound integration phase for immigrants, including rapid language training for refugees who are able to work.

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What matters to us is always providing children with the best possible support and reducing the risk of child poverty.