Coalition crisis! ÖVP and SPÖ argue by billion -dollar savings

Koalitionsverhandlungen in Österreich: ÖVP, SPÖ und NEOS ringen um Wirtschafts- und Steuerfragen bis zum 6. Jänner 2025.
Coalition negotiations in Austria: ÖVP, SPÖ and NEOS struggle for economic and tax issues by January 6, 2025. (Symbolbild/DNAT)

Coalition crisis! ÖVP and SPÖ argue by billion -dollar savings

The government is currently stuck in the coalition negotiations between the ÖVP, SPÖ and NEOS. The decisive issues of business, taxes and budget remain controversial, as OE24 reports. On Tuesday, the steering group tries to cut through the tricky "Gordian knot". The disagreements are significant, especially when it comes to savings between 15 and 24 billion euros. While the SPÖ relies on new taxes, such as a tax for energy companies, the ÖVP vehemently rejects this and refers to its election promise. You can see a "red line" in new income and warn of possible "sins" on sugar, alcohol and cigarettes, which leads to tensions within the negotiations.

Waiting for EU data

aggravated that the negotiators are waiting for new EU data that have been announced for these days. This information is crucial for the further discussions, since Austria, as one of the few countries, has not yet submitted a national budget plan to the EU, which could result in a possible opening of a deficit procedure. The EU Commission underlines the need for specific measures to refrain from possible sanctions. This was underpinned by the current budget situation, which recently predicted a deficit of 3.9 percent of GDP, as reported by the press.

The negotiations are to be continued by Monday, December 23, followed by a short break until the turn of the year. On January 6th, the decisive agreement is scheduled: "If we do not find a solution until then, it will be difficult," warns a ÖVP negotiator. In the meantime, the parties are employed in internal consultations on the next procedure, with some progress in the form of keywords in educational issues, such as the introduction of a second mandatory kindergarten year.

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OrtWien, Österreich
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