Austria's conservative People's Party (OVP) on Sunday chose as finance minister Hans Joerg Schelling, a politically connected millionaire lauded by supporters for whipping the social security network into shape. The OVP, the junior partner in a government coalition with the Social Democrats, said the party leadership unanimously picked Schelling, 60, head of the national social security system, to replace Michael Spindelegger, who quit last week in a row over tax reform.
The government shake-up in the wealthy euro zone member comes as French President Francois Hollande revamps his government after a similar political row over how to boost a flagging economy without deepening the budget deficit.
As well as pushing through efficiency reforms in the social security system that have turned deficits into surpluses, Schelling has modernised the influential business lobby the Economic Chamber as its deputy head.
That track record helped get him the post of chairman of the ailing Volksbanken AG after its state rescue in 2012, his first job in banking.
Colleagues say his experience leading two big home furnishing chains give him the real-world business nous to handle being Austria's fourth finance minister since 2011. Schelling says he does not shy from confrontation. Asked in a recent interview why Austrian politicians lack reform zeal, he said: "Fear of losing power, fear of unpopular decisions and fear of being unloved. I have none of all three."
The new OVP leader and vice-chancellor, Reinhold Mitterlehner, the economy minister, had said he would prefer not to serve as finance minister as well, a tricky dual role that Spindelegger had performed.
Spindelegger resigned on Tuesday, accusing party colleagues of disloyalty for questioning his refusal to cut income tax.
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