ÖVP, SPÖ and NEOS Begin Formal Talks on Historic Coalition

ÖVP, SPÖ and NEOS Begin Formal Talks on Historic Coalition

From left to right: SPÖ head Andreas Babler, ÖVP leader Karl Nehammer and NEOS leader Beate Meinl-Reisinger. Image: APA/HELMUT FOHRINGER

 

The People’s Party (ÖVP), Social Democrats (SPÖ) and NEOS will begin formal negotiations on Thursday to form what could become Austria’s first three-party government coalition since 1945.

The talks follow weeks of exploratory discussions after the parliamentary elections on 29 September, which were won by the far-right Freedom Party (FPÖ). However, Austrian President Alexander Van der Bellen bypassed FPÖ leader Herbert Kickl and handed the mandate to form a government to Austrian Chancellor and ÖVP leader Karl Nehammer.

Speaking earlier this week, Nehammer described the proposed coalition as a “partnership of reason and political moderation.”

Priorities on the Table

The three parties have already outlined their key priorities for the negotiations. NEOS leader Beate Meinl-Reisinger emphasised education, integration, and economic recovery, while SPÖ leader Andreas Babler stressed the need to address rising costs, improve healthcare and tackle the country’s high budget deficit. Nehammer, for his part, called for political renewal and a migration policy that “doesn’t overwhelm communities.”

Today’s first round of official discussions will cover topics such as tackling inflation and better policies on transport and climate. The issue of women and international matters will also feature in Thursday’s sessions.

At the forefront, however, is Austria’s difficult financial situation.

Speaking on Ö1 radio this morning, SPÖ finance spokesperson Jan Krainer said the country’s budget is “effectively broken,” adding that he could not recall a time when any government had faced such budgetary challenges. “Things have gone wrong, now we have to deal with the consequences,” he warned.

The SPÖ made it clear on Wednesday in the National Council, the lower house of parliament, that they were sticking to their demand for higher wealth taxation. “Those with broader shoulders should bear more than those with weaker ones,” said SPÖ leader Babler. However, Austrian Economic Association chairman Harald Mahrer, who is negotiating on behalf of the ÖVP, has ruled out new taxes in his latest statement.

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