Coalition Negotiations: Working Groups Conclude Work

The NEOS gathered their top representatives together today, Friday. The ÖVP and SPÖ will then follow suit on Monday. By then, the updated EU data on budget consolidation should probably be available for the coalition negotiations.

Coalition Negotiations: Open Questions on Taxes

The mood in the coalition negotiations had recently clouded over again, which can be attributed to statements from the economic wing of the ÖVP and NEOS. If SPÖ leader Andreas Babler does not take off his "ideological glasses", it will "be difficult to come together", said Harald Mahrer, head of the Economic Association, in the "Salzburger Nachrichten". While ÖVP leader Karl Nehammer has not ruled out tax measures, Mahrer categorically says no to at least new taxes. He also rejects "additional sin taxes on sugar, alcohol and tobacco", as they are being considered: "I don't believe in moralising regulations and a society where it is determined from above what citizens are allowed to do."

Chances of Agreement in Coalition Negotiations According to Schellhorn at 25 Percent

NEOS representative Josef Schellhorn, who had already estimated the chances of an agreement at a slim 25 percent at the beginning of the week on ORF, does not sound more positive. In the "SN" he justifies this by saying that the SPÖ is moving too little in terms of work and economy, the ÖVP in terms of federalism. In fact, it is the case that the cluster responsible for tax and economic issues has proven to be the one in which the least progress has been made. Good progress is reported from the other areas from social affairs to transport to asylum. The plan is to conclude the clusters on Friday. However, negotiations were conducted without universally recognised budget figures, as the ÖVP wants to wait for the updated EU data expected on Sunday.

Coalition Negotiations: Austria Faces EU Deficit Procedure

This also involves the question of whether it will ultimately lead to a deficit procedure, which the SPÖ would even prefer, as the immediate pressure to save would be less. The FPÖ vehemently opposed this on Friday in a press release. To ward off an EU deficit procedure, Vienna should report appropriate measures to Brussels by mid-January. Finance Minister Gunter Mayr reaffirmed this on Tuesday in Brussels and stressed that Austria would do everything to avoid a deficit procedure. Brussels will send a new "reference path" for the planning of net expenditure to Vienna in the next few days. With the reform of the EU debt rules, EU countries must submit budget plans for the first time this year. The reform grants more flexibility to countries that do not meet the Maastricht criteria for budget deficit and public debt in achieving these goals. They must specify the measures they want to use to achieve this goal in fiscal structure plans.

Austria is one of five countries that have not yet submitted their national plan. This was justified with ongoing government negotiations. Countries that exceed the Maastricht criteria receive reference paths from the EU Commission before submitting their plan. A first reference path had already gone to Vienna at the end of June, as the deadline for submitting the plans was actually the end of September. The European Commission is considering opening a deficit procedure against Austria, as the budget deficit is above the Maastricht criterion of three percent of GDP. The next step would be to recommend to the Council of Economic and Finance Ministers to establish an "excessive deficit". This could happen at the next meeting in January. EU Economic Commissioner Valdis Dombrovskis emphasized at the last Council on Tuesday that the Commission must "see concrete measures" to refrain from the deficit procedure. According to information from the EU Commission, Vienna has now requested a postponement.

NEOS Wish for More Drive in Coalition Negotiations

What has happened in the negotiations so far is now being discussed in the party committees. The NEOS held internal consultations on Friday afternoon. The focus was initially on party leader Beate Meinl-Reisinger being briefed from all subgroups, both about successes achieved and about the atmosphere. There was no comment afterwards, instead reference was made to the appointments next week with the other parties. The internal opinion formation of the Pink party will also continue over the weekend. There is no need to convene a party executive committee, as all members are constantly involved in the consultations. According to reports, there is a desire for more drive in the talks.

Decision on the Future of Coalition Negotiations on Tuesday

The ÖVP will meet online for an informal meeting on Monday. Although all top representatives of the party are present, it is not a formal board. The procedure is not much different at the SPÖ. There is a presidium there. But that also meets online and there should be no resolutions. Further discussions should take place over the weekend, possibly also taking into account the effects of the new Brussels data. How things will proceed in the coming weeks will probably be decided on Tuesday. This is the first time in a long time that a meeting of the steering group has been scheduled.

(APA/Red)

This article has been automatically translated, read the original article here.