Coalition Archives - Page 2 of 3

FPÖ and ÖVP Agree on Budget with Major Public Spending Cuts

The budget plan aims to avoid an EU deficit procedure without introducing tax increases, relying instead on cuts to public spending.

The prospect of an FPÖ-led government has sparked huge public outcry, including a large protest in Vienna on Thursday evening.

FPÖ leader Herbert Kickl extended the invitation on Tuesday, a day after President Van der Bellen asked him to form a government.

FPÖ leader Herbert Kickl hailed the start of a new political era as he invited the ÖVP to join him as a junior coalition partner.

As the far-right Freedom Party (FPÖ) begins the process of forming Austria’s next government, the news has prompted a variety of reactions.

The FPÖ was initially excluded from coalition talks, despite achieving a historic 29% of the vote in September’s parliamentary elections.

NEOS leader Beate Meinl-Reisinger said neither the ÖVP nor the SPÖ had accepted NEOS’ proposed reforms to address Austria’s economic crisis.

With Austria’s economy in decline, the next government will need to tackle a €24 billion consolidation target to reduce the budget deficit.

The wage freeze will apply to senior federal officials, including the Federal President, government ministers and parliamentary leaders.

The parties are beginning formal negotiations to form what could be Austria’s first three-party government coalition since 1945.