Austrian leader proposes to enshrine cash use in country's constitution

Austria’s leader is proposing to enshrine in country’s constitution a right to use cash, which remains more popular in Alpine nation than in many or places. Chancellor Karl Nehammer said in a statement on Friday that “more and more people are concerned that cash could be restricted as a means of payment in Austria.” His office said that “uncertainty” is fueled by contradictory information and reports.

“People in Austria have a right to cash,” Nehammer said.

While payments by card and electronic methods have become increasingly dominant in many European countries, Austria and neighboring Germany remain relatively attached to cash. government says 47 billion euros ($51 billion) per year are withdrawn from ATMs in Austria, a country of about 9.1 million people.  Protecting cash against supposed threats has been a demand of far-right opposition Freedom Party, which has led polls in Austria in recent months. country’s next election is due in 2024.

Asked in an interview with Austria Press ncy wher it wasn’t populist to run after Freedom Party on issue, conservative Nehammer replied that party stands for “beating drum a lot without actually doing anything for this.” chancellor’s proposal, according to his office, involves a “constitutional protection of cash as a means of payment,” ensuring that people can still pay with cash, and securing a “basic supply” of cash in cooperation with Austria’s central bank. Austria is one of 20 countries that are part of euro area.

Nehammer said he has instructed Finance Minister Magnus Brunner to work on proposal and plans to hold a round table with ministries concerned, finance industry representatives and central bank in September.  “Everyone should have opportunity to decide freely how and with what he wants to pay,” he said. “That can be by card, by transfer, perhaps in future also with digital euro, but also with cash. This freedom to choose must and will remain.”

Freedom Party leader Herbert Kickl accused Nehammer of stealing his party’s ideas and argued that chancellor’s “suddenly discovered love of cash” was meant only “to secure his political survival.” biggest opposition party in current parliament, center-left Social Democrats, has called for at least one ATM in every municipality and accused Nehammer of “pure populism.”

“Even if we write word ‘cash’ into constitution 100 times, re won’t be a single ATM more in Austria,” said head of its parliamentary group, Philip Kucher.