Agreement on the budget

Black-red coalition now just around the corner

Negotiating to exhaustion: Christian Stocker (ÖVP) and Andreas Babler (SPÖ).

(Bild: Krone KREATIV/GEORG HOCHMUTH / APA / picturedesk.com)

The ÖVP and SPÖ want to announce by Friday at the latest whether they will form a coalition. The signs are pointing to the formation of a government, but it depends on two major issues, one of which was clarified on Thursday morning, as an agreement has been reached on the budget.

The further procedure envisages that the party leaders Christian Stocker (ÖVP) and Andreas Babler (SPÖ) will inform Federal President Alexander Van der Bellen about the state of affairs on Thursday.

They also want to go public before the weekend. However, it could take a while before the inauguration. Talks still have to be held with the other opposition parties.

Intensive negotiations into the night
Stocker and Babler negotiated intensively late into the night and only allowed themselves a short break. Both parties even adhered to the agreement that no details of the negotiations would be disclosed.

Third National Council President Doris Bures (SPÖ) also demonstrated more commitment to finding solutions. Babler's room for maneuver was clearly limited.

We are currently trying to build the foundations and the house walls for the coalition. After that comes the interior fittings.

Ein Verhandler über die Gespräche

Common sense has returned to the negotiating table
One almost has the feeling that the threatening scenario of Federal Chancellor Herbert Kickl (FPÖ) has allowed reason to prevail among the parties. Ideology has taken a back seat and pragmatism has taken its place at the negotiating table. Of course, all this could have been achieved much earlier. So 144 days after the National Council elections, Austria is still waiting for a government.

No EU deficit procedure
Two major issues remain unresolved for the formation of a coalition. Firstly, budget restructuring, on which an agreement has now been reached to dispense with an EU deficit procedure. New borrowing for this year is to be 6.4 billion, and 8.4 billion for next year. Taxes on banks and energy companies are to contribute to the budget restructuring. However, the contribution to health insurance for pensioners will also increase

Will there be an issue partnership with the NEOS?
Question number two: What role will the NEOS play in the future? Will the Pinks be included in the government after all? Or will Stocker and Babler and NEOS leader Beate Meinl-Reisinger only agree on an "issues partnership"? One thing is certain: the small parties will be given a stronger role. As the Black-Red majority in the House is only based on one mandate, they need partners to secure legislative votes.