FPÖ and ÖVP Achieved Agreement on Budget Path

According to this, an EU deficit procedure should be avoided, as Freedom Party leader Herbert Kickl announced on Monday at a joint press conference with VP chairman Christian Stocker. Specifically, around 6.3 billion are to be saved by 2025, and this without new taxes, as Kickl emphasized. According to Stocker, this will bring the deficit back below three percent of GDP. Consolidation will take place over seven years.

FPÖ and ÖVP with Joint Appearance

It was the first joint appearance of the two party leaders, who were flanked by FP deputy Arnold Schiefer and VP club chairman August Wöginger. Kickl was visibly pleased with how quickly an agreement had been reached: "What was not possible in another constellation in 100 days, we achieved in three days of good, intensive negotiations," the FPÖ leader referred to the failed negotiations of ÖVP, SPÖ and NEOS.

Kickl spared the details, but emphasized that measures will be taken against tax evasion, and tax loopholes will also be closed. Furthermore, he announced an "end to over-subsidies" and emphasized the need to save. He ruled out an increase in mass taxes such as VAT or mineral oil tax. However, something will have to be done about loopholes and tax privileges. He rejected new taxes. Anyone who believes that things are better with these is not a doctor but a charlatan.

Subsidies and "Stability Contribution"

In a paper available to the APA, the tax measures amount to a total of 920 million. The largest chunk of the savings, however, would be on subsidies, which are to be reduced by 3.2 billion. The second largest item is a "stability contribution" from the Federal Minister amounting to 1.1 billion. The rest is divided between expenditure efficiency through reforms and "other measures". Schiefer explained that public information about planned measures would only be available from Thursday. When asked whether, as expected, the climate bonus and educational leave would be dropped, he said that one did not need a crystal ball to know that these measures would be included in the package.

The agreement is now to be cast into a "political declaration of intent", as Stocker announced. He and Kickl will sign this and Finance Minister Gunter Mayr is to forward it to Brussels to prevent the impending deficit procedure. In the paper available to the APA in parts, there is a "clear" commitment to bring the deficit below the Maastricht limit of three percent by 2025 and a saving amount of exactly 6.39 billion is given.

Restrictive Asylum Policy and ORF Reform Announced

Kickl reminded in the press conference once again that we are confronted with an "enormous debt burden" and a "deficit of threatening dimension". Therefore, a "fire brigade operation" is now needed. From 2026 onwards, there will be room for manoeuvre again and from the FPÖ's point of view, families should benefit from this. Schiefer emphasised the need for an improved investment climate, bureaucratic obstacles must fall. In addition, there needs to be more optimism among people to stimulate consumption. Politically, Kickl also announced a restrictive asylum policy and an ORF reform.

On the part of the ÖVP, efforts were made to link the rapid understanding with the grassroots work during the black-red-pink negotiations. "Comprehensive figures and data material were already on the table," emphasised Wöginger, not without mentioning that the negotiations with the FPÖ on the budget had been "very constructive".

The party leaders did not name a roadmap for further substantive negotiations. "We have done what is important and now we come to the freestyle," said Schiefer. This will not take three months, but also not three days.

EU Commission Awaits Measures

According to information from the EU Commission in Brussels, the Commission is still waiting for the Austrian measures. Finance Minister Mayr is expected in Brussels tomorrow for talks with Valdis Dombrovskis, EU Commissioner for Economy and Productivity. The budget plan is also likely to be a topic, even if it is not officially on the agenda. The Commission told APA today that if the Minister presents "detailed and solid measures" tomorrow, the Commission will evaluate them.

The measures must arrive in Brussels in time for the next meeting of the Council of Economic and Finance Ministers on 21 January, and be evaluated. If the Commission assesses the new budget path as sufficient, a deficit procedure can be avoided. The Economic and Finance Ministers would then decide on the basis of a possible new recommendation from the EU Commission.

(APA/Red)

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