Despite considerable efforts to harmonize reception conditions for asylum seekers in the European Union, the adoption of Directive 2003/9/EC reflects domestic interests, producing substantially different standards at the national level. By drawing upon the Austrian case, this article examines the politics and policies of reception that have emerged in the context of the adoption, transposition and implementation of the Directive. Based on analysis of policy documents, house rules and expert interviews, it will be demonstrated to what extent and why outcomes differ widely even at the sub-state level. The prevailing variations are ascribed to, first, wide margins of administrative discretion and, second, conflicting interests between regional and federal governments, regarding financial and executive competences but also over the mere presence of asylum seekers. Thus, the concept of ‘minimum standards’ translates into minimum welfare and restricted enjoyment of personal freedom but not into measures supportive of a dignified life for asylum seekers.