A coalition agreement is expected to shape the future political orientation, comprising a range of concrete measures. Migration is a central theme, with the family reunification for third-country nationals to be made possible and the Interior Minister, Gerhard Karner, to be granted the necessary authority, in line with the European Convention on Human Rights. It is noteworthy that the ÖVP could have implemented this proposal in the previous government, but it was not carried out.
Another new development concerns rejected asylum seekers, who will be housed in special return centers to prevent them from evading the authorities after a negative decision. Integration will also be addressed, with a ban on headscarves for girls until the age of 14, after which the decision to wear a headscarf will rest with the young people themselves. A similar ban was previously introduced in public schools in 2019, but was later struck down by the Constitutional Court in 2020.
A particularly contentious point is the political Islam, with the political Islam to be introduced as a separate criminal offense in the penal code, despite the SPÖ blocking a comprehensive ban. In the juvenile justice system, however, the status quo will be maintained, with the proposal to lower the age of criminal responsibility to 12, as requested by the FPÖ, not being implemented.
The education policy will also see some changes, with the early childhood education being transferred to the NEOS, which will play a central role in the Ministry of Education. A second compulsory kindergarten year will be introduced and the pilot project of a mobile phone ban in schools in Vienna will be expanded to the entire country, with exceptions for educational purposes.
The parental leave will also be reformed, with the possibility of extending it for the purpose of parental leave being abolished and the budget for parental leave being drastically reduced from 500 million euros to 150 million euros.
In the media policy, the ORF broadcasting fee will remain unchanged at 15.30 euros per month until 2029, with the proposal to abolish it and fund the ORF from the federal budget, as requested by the FPÖ, being rejected.
The housing policy will also be reformed, with rent freezes in place this year and moderate increases of up to one or two percent in the next two years. From 2028, rents can increase by up to three percent annually, with this cap also applying to new construction apartments for the first time.
To boost job incentives, the tax rate on overtime will be significantly reduced and the government plans to take measures to strengthen the economic location, with the Minister of Economic Affairs, Wolfgang Hattmannsdorfer, expected to present a stimulus package soon. Part of this package is a reduction in social security contributions, including a reform of the Family Allowance Fund, starting from 2027. While the economy has been calling for this step for years, the SPÖ had previously blocked such reforms.
To balance the budget, the banks will be expected to contribute more, with the stability levy being increased to 500 million euros in 2025 and 2026 and then being set at 200 million euros permanently, marking a clear departure from the ÖVP’s previous line.
The question of the cabinet reshuffle within the SPÖ, however, remains unclear, with the party’s internal power struggle expected to continue in the coming days, making it difficult to finalize the government’s composition.