Candy coalition: Will Nehammer form a government in time?

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ÖVP, SPÖ and NEOS are negotiating a candy coalition in times of crisis. Budget and migration solutions are urgently needed.

ÖVP, SPÖ und NEOS verhandeln über eine Zuckerl-Koalition in Krisenzeiten. Lösungen für Budget und Migration sind dringend nötig.
ÖVP, SPÖ and NEOS are negotiating a candy coalition in times of crisis. Budget and migration solutions are urgently needed.

Candy coalition: Will Nehammer form a government in time?

Forming a government in Austria faces an enormous challenge. ÖVP Chancellor Karl Nehammer, SPÖ leader Andreas Babler and Neos leader Beate Meinl-Reisinger have been in tough negotiations for weeks to form a so-called candy coalition. Given the current economic crisis the population is pushing for quick solutions and a government that can act. The pressure is high because Austria has to save up to four billion euros annually in order to avoid the threat of EU sanctions. Nevertheless, the negotiating climate remains tense, especially on contentious issues such as wealth taxes, which are demanded by the SPÖ captain Kaiser, while the ÖVP and Neos speak out against such proposals.

Continuation of negotiations

The negotiations are scheduled to enter a new round on December 27th, after almost everything had failed at the beginning of the week. Despite a preliminary consensus on a seven-year budget restructuring, implementation is still uncertain. While the SPÖ is pushing for revenue-related measures, the governing parties reject an inheritance or wealth tax. The demands for fundamental reforms in education and social structures also remain a hot topic. The fronts have hardened, especially among the Neos, who insist on lighthouse projects and a federalism debate.

Experts and negotiators are optimistic that an agreement can be reached by mid-January. But if it takes longer than January 20th, the candy coalition could be doomed to failure, which could pave the way for the FPÖ, which has achieved up to 40 percent in polls, to the Chancellery. How the negotiations continue and whether an agreement is reached will have a significant impact on Austria's political landscape, as well Austria 24 reported.