There is an initial agreement in the coalition talks between the ÖVP and the right-wing populist FPÖ. Billions in savings are intended to reduce debt and avert an impending EU deficit procedure.
In Austria, the right-wing populist FPÖ and the conservative ÖVP have agreed on a savings package worth 6.3 billion euros – without new taxes, said FPÖ leader Herbert Kickl. Instead, measures against tax loopholes, savings in the ministry apparatus and an “end to excessive funding” are planned, said Kickl. The big common goal was to prevent the impending EU deficit procedure.
Allowed deficit significantly exceeded
The measures are intended to reduce the budget deficit to less than three percent, as prescribed by the EU. According to available estimates, Austria would have significantly exceeded the permitted budget deficit. The country is struggling with a weakening economy and a high budget deficit.
ÖVP boss Christian Stocker explained the quick agreement within three days with the extensive preparatory work in the coalition negotiations between ÖVP, SPÖ and NEOS that later failed. Following the fundamental agreement on the budget, the signs for a government alliance are now very good.
Kickl is probably on his way to the Chancellery
“In a second phase, the substantive negotiations between our two parties in the individual policy areas will now begin,” announced Kickl. He is confident “that we will come to viable common solutions there too.” The FPÖ and ÖVP started coalition negotiations on Friday. If the talks are successful, it would be the first time that the FPÖ will nominate the chancellor in Austria.
New elections are also still possible in Austria
After the failed coalition talks between the conservative ÖVP, the social democratic SPÖ and the liberal NEOS, Austria's Federal President Alexander Van der Bellen gave Kickl the order to form a government. The ÖVP then agreed to talks with the FPÖ, although it had previously ruled out a coalition with Kickl because of his extreme positions. If agreement cannot be reached, new elections in Austria are also an option.
