Austria ÖVP and FPÖ agree on a path to budget consolidation
In Austria, the right-wing FPÖ and the conservative ÖVP have agreed on a course to consolidate the budget.
13.01.2025, 12:16
SDA
A package of 6.3 billion euros (5.9 billion Swiss francs) has been drawn up for 2025 - without any new taxes, said FPÖ leader Herbert Kickl. The main common goal was to prevent the threat of EU deficit proceedings, he said.
The measures are intended to reduce the budget deficit to below three percent by 2025, as prescribed by the EU. The consolidation path is planned for seven years. According to current estimates, Austria would have significantly exceeded the permitted budget deficit.
ÖVP leader: agreement thanks to preparatory work in coalition negotiations
ÖVP leader Christian Stocker explained the quick agreement within three days with the extensive preparatory work in the coalition negotiations between ÖVP, SPÖ and Neos, which later failed. According to the negotiators, the aim was to close tax loopholes and eliminate excessive subsidies, among other things. No further details of the steps were given.
The current agreement is seen as an important step on the way to a joint government.
Deadline just barely met
Austria will now report the consolidation path to Brussels just in time. The EU Commission must then decide whether the plans will be accepted.
The FPÖ and ÖVP have been in alliance talks for a few days. The right-wing populists clearly won the election around 100 days ago. The ÖVP had recently given up its resistance to government participation with the FPÖ under Kickl.
