Austria: Parliamentary Committee investigated “citizenship by investment”

By EUDO CITIZENSHIP expert Gerd Valchars

In Austria a Parliamentary Committee installed to investigate on a broad range of various cases of suspected political corruption summoned several witnesses to hear them on the government’s policy of “citizenship by investment” and fast track naturalisations based on “outstanding achievements”.

According to Article 10 (6) of the Austrian Citizenship Act an individual may be granted Austrian citizenship without having met the requirements for ordinary naturalisation “if the Federal Government confirms that the granting of nationality is in the particular interests of the Republic by reason of the alien’s actual or expected outstanding achievements.”

The provision raised broad attention, when Uwe Scheuch, then head of the Carinthia Freedom Party and member of the provincial government, allegedly offered Austrian citizenship to a Russian investor as a reward for a major investment in the province and separate payment to the party coffers (see EUDO CITIZENSHIP news). In June 2012 the politician was condemned to a fine of EUR 150.000,- and a suspended sentence of 7 months of prison. Scheuch appealed to the higher court, the case is still pending but sparked a public debate about government policy on these fast track naturalisations. Another case concerns two other Russian investors in 2007 who were naturalised after having invested EUR 900.000,- each. The late Jörg Haider, then Governor of the Province of Carinthia, is suspected of having intervened in favour of naturalisation and having pushed then Chancellor Wolfgang Schüssel and Minister of Economy Martin Bartenstein to confirm that the granting of nationality was in public interest.

On 3 October, the Parliamentary Committee summoned high-level officials from the Ministries of Interior, Defence and Sports, Economics and Education and Arts and Culture as witnesses to investigate the government’s naturalisation policy. The officials denied any political lobbying for naturalisations in the context of this provision. Politicians involved in these cases have not been heard before the Committee. The government majority blocked their summons.

News Articles (in German):

Die Presse, 04 October 2012

Der Standard, 03 October 2012

Der Standard, 03 October 2012

EUDO-News, 05 August 2011: Austrian regional party boss condemned for offering citizenship in exchange for party financing