BUDGET BOMBSHELL: Coalition’s Secret Plans for Cuts and Savings Revealed!

BUDGET BOMBSHELL: Coalition's Secret Plans for Cuts and Savings Revealed!

After the rapid agreement on the budget’s revision, the coalition negotiators of the FPÖ and ÖVP are now tasked with clarifying the concrete details of their budget policy. Today, a high-ranking negotiation team will meet to discuss the next steps. While the party leaders, Herbert Kickl (FPÖ) and Christian Stocker (ÖVP), are not present according to APA information, the team will intensely discuss the allocation of subgroups and the further timeline.

It remains unclear how many subgroups will be formed for the in-depth negotiations. So far, only the two top-level groups, led by the party leaders, have been established. Now, a decision is to be made on the number of teams to be formed and the exact timeline for the negotiations. Experts assume that the coalition negotiations could take up to a month, with a possible agreement before the end of the month. It remains to be seen if the EU Commission will react to the budget plan of the negotiators soon.

Parallel to this, important decisions on possible ministerial positions may be made at the expanded party leadership of the FPÖ, which traditionally takes place at the pre-New Year’s gathering in Vösendorf, Lower Austria, on the coming weekend. In addition to the top representatives of the federal party, delegates from the federal states will be present, which will foster a broader opinion-forming process within the party.

First details on budget measures have leaked

Already now, first details on the budget measures of the new government have leaked. According to Ö1’s midday news, among other things, special dividends from the State Holding ÖBAG and higher payouts at the ASFINAG and the Federal Real Estate Company (BIG) are planned. These are expected to bring in a “substantial three-digit million-euro sum.” Also, the party is working on fine-tuning the pension accounts to achieve additional savings.

Furthermore, FPÖ and ÖVP are working on cuts to the automatic valuation of social benefits, which are expected to bring in around 150 million euros this year. Further cuts could affect the climate bonus, the climate ticket, and tax incentives for electric vehicles and the promotion of photovoltaic systems. The parental leave could also be scaled back to alleviate the budget.