Negotiations of the Austro-Stampel: Is the big breakthrough before the deadline?

Negotiations of the Austro-Stampel: Is the big breakthrough before the deadline?

Österreich, Land - Negotiations on the formation of a new government in Austria are going into the decisive phase. On Monday, the first day of the new year, Chancellor Karl Nehammer, SPÖ boss Andreas Babler and Neos boss Beate Meinl-Reisinger meet for a chief round that begins at 10 a.m. The conversations have caused excitement because the challenges are enormous. So far, the party leaders have created the budget consolidation concept for seven years, but where the savings of up to 24 billion euros are to come, remains unclear. On January 21, the EU Commission will decide whether a deficit procedure is necessary, which could significantly influence the savings. According to Today.

challenges and disagreements

A crucial topic will be the question of whether the renovation takes place in the context of an EU deficit procedure, which the SPÖ supports, or autonomously as the NEOS wish. The pressure on the negotiators is high, because without a sustainable concept there is a risk of intervention by the EU, which could further tighten the situation. The press reports that it is in conversation about concrete projects, but so far large system changes or "lighthouse projects" are hardly in sight. So far, the NEOS seem dissatisfied with the status quo and consider to withdraw from the negotiations.

The urgency of the situation is reinforced by the upcoming deadline to submit the budget consolidation measures to the EU, which must be available by January 15. Another meeting could make decisive progress, but the uncertainty remains. All eyes are focused on the chief round, in which the parties could possibly present the first specific measures for budget consolidation. Time is forced and the next alliance could hardly be possible without unity on fundamental financial issues.