Breakthrough

“Zuckerl” agreed on a path for debt

(Bild: amazing studio - stock.adobe.com)

The coalition negotiators have agreed on a seven-year consolidation path. This was announced by NEOS leader Beate Meinl-Reisinger on Friday evening. Over the next few days, work will continue on a double budget for the next two years.

On Friday evening, it was announced that the negotiators from the ÖVP, SPÖ and NEOS had agreed on a consolidation path over seven years after almost nine hours of talks. It was not initially known exactly what this would look like. Consolidation policy refers to all political decisions and measures aimed at reducing the budget deficit and/or the debt level.

NEOS leader Beate Meinl-Reisinger and SPÖ leader Andreas Babler made separate statements after the negotiations. They did not say whether the path would take place within the framework of an EU deficit procedure or not. Babler spoke of moving hours with a lot of movement on the budget. Further talks were needed to take measures against inflation.

Chancellor and ÖVP leader Karl Nehammer reported on "very intensive talks", which were about "nothing less than Austria's comeback". A comeback in terms of growth, employment and prosperity, according to Nehammer. In order to be able to take offensive measures, for example in the fight against inflation, further talks will be necessary, explained Babler.

It was always a case of tit for tat
The meeting was accompanied by talks between the three party leaders and Federal President Alexander Van der Bellen in the Hofburg. The head of state had received them for individual talks. The presidential chancellery stated that regular exchanges had been agreed between Van der Bellen and the negotiating party leaders, including this meeting before Christmas.

Even though there was official talk of constructive talks, the long day of negotiations was often at a crossroads. Both the NEOS and the SPÖ are said to have threatened to break off the talks. The SPÖ's demand for wealth taxes in particular has repeatedly caused heated disputes. For example, the important SPÖ negotiator and Third President of the National Council, Doris Bures, cites wealth taxes as a basic condition, using inheritance tax as an example.

The NEOS, on the other hand, are calling for structural reforms that should be reflected in the budget for the next two years.

It was only on Friday that there was no particularly positive news for the domestic economy: Austria's economic recovery is lagging behind expectations, according to the Wifo/IHS forecast. The budget deficit could rise to between 4.2 and 3.7 percent of gross domestic product in 2024. Budget consolidation by the future government has not yet been taken into account.