FPÖ Criticizes KIM Regulations as Restrictive and Calls for Government Action

Vienna - The Freedom Party (FPÖ) has expressed strong discontent regarding the continued enforcement of the KIM regulations by the Financial Market Authority (FMA), labeling it as a form of overreach that undermines the autonomy of citizens. FPÖ finance spokesperson Hubert Fuchs has emphasized that even though the regulation has officially expired, it is being perpetuated through an FMA circular that imposes a so-called 'supervisory expectation.' Fuchs described this situation as a serious infringement on property rights, arguing that it operates without a legal foundation yet still exerts significant influence.

Recently, FMA board member Helmut Ettl announced that banks deviating significantly from the now-expired KIM criteria would face increased scrutiny from the FMA. In response, Fuchs called for decisive action from Chancellor Stocker and Finance Minister Marterbauer, questioning the rationale behind enforcing an outdated regulation. He compared the situation to enforcing a canceled mask mandate, stating that it contradicts fundamental principles of the rule of law.

The stipulations set forth by the KIM regulations, including the mandatory 20% equity requirement and a maximum loan burden of 40% of household income, have been criticized for adversely affecting those looking to purchase property. Fuchs argued that such restrictions hinder individuals aspiring to build their own homes or acquire property through personal effort, noting that the regulations penalize responsible households with long-term plans while the government remains in a state of inaction.

To illustrate the impracticality of the current system, Fuchs provided a calculation based on average earnings. With a net monthly income of approximately EUR1,995, the 40% cap on debt translates to a maximum monthly payment of around EUR798. At a 4% interest rate over a 30-year term, this payment would allow for a loan of about EUR165,000. Factoring in the required 20% equity means a purchase price ceiling of roughly EUR206,000, which is rarely attainable in most regions across Austria. Fuchs labeled this scenario as disconnected from reality, market dynamics, and socially irresponsible.

Furthermore, Fuchs questioned the efficacy of the KIM regulations, citing that the Austrian National Bank reported only a 0.1% improvement in loan default rates since their introduction. He argued that the entire home loan market is being constricted unnecessarily due to bureaucratic regulations.

Fuchs called for an end to these restrictive measures and urged a shift towards fostering true property ownership. He asserted that instead of overregulating banks and obstructing property development, the government should address the rising construction costs and housing shortages that are prevalent in the current market.

In conclusion, Fuchs reiterated the need for policies that support affordable housing, contending that true commitment to making home ownership accessible means standing with the people rather than adhering to excessive bureaucratic constraints. He noted that property ownership should not be viewed as a luxury but rather as a social safety net for the middle class, who are increasingly being neglected by the current administration.