Traffic light coalition faces sticking points: budget issues dominate discussions!

Traffic light coalition faces sticking points: budget issues dominate discussions!

The crucial coalition negotiations between the ÖVP, SPÖ and Neos are in full swing. From Tuesday afternoon, party leaders Karl Nehammer (ÖVP), Andreas Babler (SPÖ) and Beate Meinl-Reisinger (Neos) will enter a decisive phase. According to information from Today.at A large group of other members of the former exploratory teams are working on the traffic light coalition at the Palais Epstein. A total of 22 people are sitting at the negotiating table to jointly set the course for a possible government, while a meeting is scheduled to last around three hours.

Budget management as a central challenge

Critical topics such as budget consolidation and economic stability are driving the discussions. The pressure is enormous: Austria has to save between 18 and 24 billion euros by 2028 in order to avoid the impending EU deficit procedure oe24.at reported. Agreements have already been reached in the subgroups, while deep differences still exist, particularly in the area of ​​economics. Nehammer expressed optimism and spoke of surprisingly good progress in the subgroups. However, the question remains as to how the savings can be achieved - whether through tax increases or cuts in government spending.

While the SPÖ and Neos have warned not to allow radical austerity measures, the ÖVP and Neos fear for Austria's reputation on the financial markets. The discussion about possible acceptance of the EU procedure is also coming to a head, as the SPÖ is advocating for it in order to reduce the need for austerity, while the other parties are sticking to the current course. Further negotiations are scheduled for Wednesday and Friday that will decide the future of the traffic light coalition.