No new taxes

Stocker: A budget restructuring is “achievable”

Stocker and Kickl announced an agreement on the budget at their first joint appearance.

(Bild: Helmut Fohringer)

On Monday, the FPÖ and ÖVP held a press conference in parliament to discuss the coalition talks. Since Friday, a group of experts has been negotiating how the severely ailing domestic budget should be restructured. As the "Krone" reported in advance, an agreement was reached and a 6.3 billion euro package was put together.

Blue and black are getting serious: FPÖ leader Herbert Kickl, ÖVP leader Christian Stocker, FPÖ member of the National Council Arnold Schiefer and ÖVP parliamentary group chairman August Wöginger appeared before the media at 10 a.m. on Monday for a joint press conference on the "initial results of the budget roadmap". Specifically, they agreed on a seven-year recovery path without an EU deficit procedure. The savings pencil will be applied above all to climate protection measures.

No new taxes under the blue-black government
"Problems get bigger if you don't take countermeasures. The budgetary situation is one such problem. Talking about it forever does not improve the situation," said the FPÖ leader. In just three days, a 6.3 billion euro package had been jointly developed that would spare Austria the deficit procedure - even without new taxes. "It's about trust, predictability and security," emphasized Kickl. Negotiations will now continue on the basis of the budget.

ÖVP leader Christian Stocker emphasized: "Speed was necessary. We wanted to avert a deficit procedure and reached an agreement quickly." Together with Kickl, he now wants to sign a memorandum of understanding, which will then be sent to Brussels by the Finance Minister. In the coming weeks, the details of the budget and measures for the economy will be fine-tuned. "In doing so, we as the ÖVP are also taking responsibility," Stocker continued.

This is in the austerity plan
From 2026, there should be room for maneuver - FPÖ leader Herbert Kickl spoke of "maneuvering mass" - for investments. For the next two years, however, the blue-black government will have to pursue a tough austerity course. As the "Krone" learned, 6.3 billion will be saved this year alone. Half of this (3.2 billion) is to be cut in subsidies. As is well known, the climate bonus alone accounts for 2.3 billion. The rest is apparently to be made up of climate subsidies and cuts to educational leave. One billion is also to be cut across all ministries.

Around a further billion (920 million) is also to be achieved through "adjustments to the tax system". In this context, FPÖ leader Kickl spoke of "tax loopholes" and "tax privileges" that are to be abolished and emphasized that there would be no increases in mass taxes such as VAT, mineral oil tax or corporation tax. According to information from "Krone", such "privileges" could include tobacco tax on e-cigarettes, a new regulation of property tax or various income tax allowances.

The ÖVP and FPÖ did not want to reveal further details of their plans to the public because the savings plans first have to be approved in Brussels. A press conference has been announced for Thursday. On Monday, interim Finance Minister Gunter Mayr will make a pilgrimage to the EU Commission with detailed figures. This should then give the green light by Thursday.

(Bild: Bundesministerium für Finanzen)

(Bild: Bundesministerium für Finanzen)

The letter that the Finance Minister is to take with him to Brussels.

(Bild: Bundesministerium für Finanzen)

Blue and Black presented themselves as capable of action. In "detailed negotiations", offensive measures for the location and people in our country will now be discussed on the one hand and the precise design of the 7-year consolidation path will be worked on the other. "Performance must be worthwhile", FPÖ finance expert Arnold Schiefer and ÖVP parliamentary group chairman August Wöginger also emphasized.

Stocker's political balancing act
For the ÖVP, the pact is known to be a political balancing act. Stocker had already admitted in several interviews at the weekend that his reputation had suffered as a result of the U-turn towards the FPÖ. While Stocker was still considered one of Kickl's fiercest critics during the election campaign, he has been negotiating a new government with the FPÖ leader since the talks with the SPÖ and NEOS broke down.

However, his attitude towards the blue party leader has not changed: "I know what I said and I stand by what I said. And I also know that I am now doing something that I previously said I would not do," Stocker explained in the new ORF program "Das Gespräch". Once again, he blamed the SPÖ, above all party leader Andreas Babler, for the collapse of the three-way talks.