By December 12, all subgroups in the coalition negotiations between the ÖVP, SPÖ, and NEOS are expected to have met at least once. At that point, the steering group, which includes party leaders, will decide whether further rounds of talks are necessary. Economic and tax issues remain particularly contentious. ÖVP leader Karl Nehammer has even threatened to walk away from the talks but remains optimistic about the prospects of a coalition between the ÖVP, SPÖ, and NEOS.
According to the current plan, all subgroups should have concluded their work by December 12, with a clear understanding of where the three parties are aligned, where there are still unresolved issues, and where they remain at an impasse. These open points will be reviewed by the steering group, which includes Karl Nehammer (ÖVP), Andreas Babler (SPÖ), Beate Meinl-Reisinger (NEOS), as well as the presidents of the Austrian Trade Union Federation (ÖGB) and the Chamber of Commerce (Wirtschaftskammer), Wolfgang Katzian and Harald Mahrer.
Nehammer Remains Optimistic
Negotiation circles report that progress has been made in many groups, but some areas are slower, especially where ideological differences clash. “Naturally, there are clashes in some of the negotiation groups. Different ideological approaches are colliding. But that’s why we are negotiating,” Nehammer said in an interview with Standard (Saturday edition). NEOS has repeatedly stated that they will only enter the government if they can implement reforms, and the SPÖ has emphasized that governing is “not an end in itself.” “It’s about the path, but no longer the direction. That makes me optimistic,” Nehammer said, still seeing good chances for a coalition.
Tax Disputes Show Division Between ÖVP and SPÖ
The rift between the ÖVP and SPÖ on taxes was evident after a media exchange on Friday, following a meeting of the SPÖ federal executive. The SPÖ has insisted on a “contribution” from those who have “benefited the most in the past” to help balance the budget, which needs to save around 15 billion euros structurally by 2028 while still investing and strengthening the economy. Nehammer quickly rejected this on X, stating, “We need a spending brake, not new taxes.” Wealth or inheritance taxes, which were not explicitly mentioned in the SPÖ document, would endanger wealth and jobs, he said. “If the SPÖ insists on this, the negotiations will end quickly.” The SPÖ did not comment on this request when contacted by APA, stating that they would continue the “constructive and trusting talks away from the media spotlight.”
Hattmannsdorfer: Economic and Tax Issues Are Key to Coalition Success
For Wolfgang Hattmannsdorfer (ÖVP), who leads the cluster on economy and taxes, this area is the key point in forming the coalition. “The outcome of this group will decide whether the government will exist or not,” he told Oberösterreichische Nachrichten (Saturday edition). He did not provide specifics about the negotiations, but stated that the first week was used for aligning positions and getting to know each other better. According to Hattmannsdorfer, the main issue should be regaining competitiveness. “That will decide whether people have jobs and the income to afford a good life.” He stressed the need for individual responsibility and a commitment to performance rather than an “all-inclusive mentality.” Meanwhile, Defense Minister Klaudia Tanner (ÖVP) appealed in Ö1 Mittagsjournal that the next government should not cut defense spending, especially in a time of multiple crises and wars where Austria must be prepared.
