Traffic light coalition at a crossroads: budget crisis stalls negotiations!

Traffic light coalition at a crossroads: budget crisis stalls negotiations!

The nerve-wracking government negotiations between the ÖVP, the SPÖ and the NEOS are stuck, but the “Austro traffic light” has at least been able to avert an initial break. After several weeks of intensive discussions, the party leaders managed to reach a consensus on a seven-year consolidation path at the Palais Epstein on Friday. The requested double budget for the next two years was also put on the negotiating table Today reported. It was emphasized that the first savings should be drastically reduced next year, while there are still uncertainties about the possible impact on government finances. The state treasury has a hole of up to 24 billion euros, which makes negotiations even more difficult.

Progress despite differences

The negotiations, which last well over four weeks, focus in particular on contentious budget issues. The pressure here is great: the SPÖ is demanding an increase in revenue through higher contributions from wealthy people, while the ÖVP and NEOS reject tax measures. The latter want to reach an agreement on the so-called “lighthouse projects”, which represent key focal points of the government meetings, such as express reported. The NEOS negotiator emphasized that everyone was interested in a solution and that they were now negotiating “to get ahead, not to get out”.

Although an impending crisis was averted, the situation remains tense. The main actors, Chancellor Karl Nehammer (ÖVP), Andreas Babler (SPÖ) and Beate Meinl-Reisinger (NEOS), are under pressure to reach an agreement that will secure the level of prosperity in Austria. The next hearing date is still open, but according to information from Today The government continues to grind until December 23, while citizens hope for financial stability in the meantime.