ÖVP and SPÖ are racing towards compromise: budget under pressure!

ÖVP and SPÖ are racing towards compromise: budget under pressure!

In Austria, the leading politicians of the ÖVP and SPÖ are faced with a mammoth task: After failed coalition talks, the two parties are meeting to draw up a new two-year budget. The discussions over the weekend revolved around ÖVP leader Christian Stocker and SPÖ leader Andreas Babler, while representatives of the social partners, including trade unionist Wolfgang Katzian and representatives of the Chamber of Commerce, also pulled together in small groups. How Ö24 reported, ÖVP and SPÖ seem to have found an approach to the question of financial planning that should leave the existing cumbersome budget planning behind.

The central point of contention is still the budget itself, which SPÖ negotiator Kai Jan Krainer describes as “de facto broken”. In an interview in the “Ö1-Morgenjournal” Krainer explained that it was now time to find “pragmatic solutions”. A radical austerity strategy is not sustainable in the current situation, especially since inflation and rising rents are placing a heavy burden on the population. The negotiations, which begin with the tax and finance subgroup, cover several topic clusters, although explicit guidelines have not yet been communicated The press reported.

Futuristic solutions in crisis

The coming budget should not only be adapted to the crisis situation, but also help to stimulate the economy. The two parties have agreed to adopt some elements of the current blue budget to ensure a smoother implementation of the measures. In a surprising twist, the SPÖ has waived wealth taxes, while the ÖVP has now agreed to a temporary bank levy. This is a significant advance as it could speed up negotiations between the parties. In addition, the possibility of monitoring messenger services in the context of the current security situation following an Islamist terrorist attack is discussed.