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Austria Pulls ZARA Funding, Forcing Layoffs and Service Freeze

A retroactive cut halts victim aid, imperiling Austria’s only EU‑recognized online‑abuse reporting channel.

Overview

  • The Families Ministry ended ZARA’s federal subsidy retroactive to January, citing budget cuts and a shift in which ministries should carry the cost of violence prevention.
  • ZARA dismissed all 18 employees and paused free legal and psychosocial help for targets of online hate and racism, with staff now only logging new reports.
  • The decision jeopardizes Austria’s sole Digital Services Act “Trusted Flagger,” which gives priority to its takedown notices on major platforms but receives no funding from the EU.
  • Vice Chancellor Andreas Babler and Women’s Minister Eva‑Maria Holzleitner said they are seeking replacement financing as NGOs, unions, and rights groups pressed the government to keep the service running.
  • ZARA warns it could fully shut by June without new money, while Vienna’s €93,500 grant and income from ZARA Training continue but cannot replace past federal support of roughly €300,000 to €330,000 a year.