Coalition crisis before Christmas: Negotiations threaten to burst!

Coalition crisis before Christmas: Negotiations threaten to burst!

On Friday, December 20, 2024, the coalition negotiations in Austria experience a decisive moment. The political leaders of ÖVP, SPÖ and Neos meet in the Palais Epstein, hoping to make progress in the lengthy discussions. SPÖ boss Andreas Babler described the day as "very crucial" and emphasized that there were still some "political questions to clarify". Neos boss Beate Meinl-Reisinger and ÖVP boss Karl Nehammer also optimistically commented on the possible agreement, while at the same time preparing for "intensive negotiations". These conversations have been going on for over four weeks and are very dedicated to an alarming budget that requires at least 14 billion euros in savings, such as

critical topics and possible consequences

Both parties are based on progress in budget consolidation and the introduction of new taxes. While the SPÖ is pushing for the introduction of wealth taxes, such demands encounter resistance from the ÖVP, in particular from the economic wing. The negotiators are primarily talking about the structural reform needs of the next two years. BABLER recently spoke of a "desire for wider shoulders" that should contribute more to renovate the budget. Neos boss Meinl-Reisinger emphasized that "negotiating in order not to get to get out" what a relaxing attitude in the middle of the tense negotiations shows, as krone.at reported.

expectations of this session are high because the conversations could have serious consequences for government formation. The SPÖ threatened that the negotiations burst, no progress in the topic of wealth taxes should be made. Familiaries also report uncertainties about the pace and the framework of the budget consolidation, which must also be on the agenda. Another issue would be a possible EU deficit procedure, which the SPÖ favors while ÖVP and Neos want to act independently.