First Three-Party Coalition in Austria is Set

On the second attempt, ÖVP, SPÖ, and NEOS have agreed on a three-party coalition, the parties announced to the APA on Thursday morning. As announced, a budget consolidation without an EU deficit procedure is planned, along with significant tightening of asylum laws and relief for tenants. A "child basic security" is also planned.

ÖVP, SPÖ, NEOS form three-party coalition: What the government program should include

In the more than 200-page program titled: "Do the Right Thing Now. For Austria", which is available to the APA as a draft, "consensus and pragmatism" are emphasized as the basis of the agreement. The greatest progress for Austria has always arisen from "consensus, cooperation, and confidence". Reference is also made to the failed negotiations between ÖVP and FPÖ: "While others refuse this cooperation and shirk their responsibility, we establish consensus and the ability to act." Now it is not about party-political interests, but "about all of us, about Austria, about nine million people in our country".

Sharp measures are announced in the asylum area. Family reunification is to be "immediately" stopped at least temporarily, and a headscarf ban for underage minors (up to the completion of the 14th year of age) is targeted. Measures in tenancy law are also included in the program, such as increasing the minimum duration of fixed-term rental contracts to five years. The plan for the development of the federal army will be maintained, as well as participation in Sky Shield. The ORF fee is not to be increased until 2029. In childcare facilities, a healthy snack is to be provided free of charge. Women's hygiene and contraceptive products are to be exempt from VAT.

According to the draft, innovations are also planned in the area of poverty and social affairs. Child poverty is to be countered with a "child basic security" and halved by 2030. The previous social assistance is to become a "new social assistance", with a uniform daily rate based on the compensatory allowance guideline rate. The social assistance created in 2019 under the black-blue coalition, instead of the minimum security, set maximum limits instead of the minimum standards that were valid until then.

Three-party coalition aims to prevent deficit procedure

The budget is to be consolidated as announced in accordance with the EU fiscal rules, with the aim of preventing a deficit procedure. In view of the "current economic challenges," the new federal government plans to consolidate the budget over the next seven years. A double budget and a new federal financial framework are also to be decided quickly. The plans, as already announced, include a package of measures for the year 2025 amounting to more than 6.3 billion euros and for the year 2026 amounting to 8.7 billion euros.

Ministerial Posts in Three-Party Coalition Still Open

It is likely to remain open for the time being who will hold which ministerial office. The ministerial posts must first be finalized internally within the parties in the coming days. For the nominations, the parties will involve their respective committees. It has already been decided that there will be six departments each for the ÖVP and SPÖ and two for the NEOS. The number of state secretaries is expected to be unusually high at seven. On Thursday, the three parties will present the government program of the future government.

The Viennese City Councillor for Finance, Peter Hanke (SPÖ), who was temporarily considered for the position of Finance Minister, is now more likely to become the head of the infrastructure ministry in the future ÖVP-SPÖ-NEOS coalition. He was asked and he would do it, a spokesperson said in response to an APA inquiry. Of course, one still has to wait for the party committees, which will meet at the SPÖ on Friday. In recent days, differences of opinion between SPÖ leader Andreas Babler and Vienna's Mayor Michael Ludwig have emerged, particularly regarding the appointment of the finance ministry. For this position, former ORF chief Alexander Wrabetz and Salzburg National Council member Michaela Schmidt were also mentioned as potential candidates.

Three-Party Coalition Could Be Sworn In on Monday

The upcoming Monday is still considered a possible swearing-in date for the new federal government. The prerequisite for this is that the party committees give the green light for the coalition pact. The NEOS have to overcome the biggest internal hurdle, as a membership meeting on Sunday will make the final decision for the Pink party. A two-thirds majority is required for the acceptance of the coalition agreement.

(APA/Red)

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