VIENNA: Coalition negotiations in Austria are heating up as leaders from the ÖVP, SPÖ, and NEOS meet on Wednesday for crucial discussions on boosting the economy. Experts will join the talks, and budget adjustments are expected afterward. A follow-up meeting on Thursday aims to finalize the budget figures and prevent further disagreements.
The SPÖ is urging a quick resolution on financial data to outline a clear budget consolidation plan. However, the ÖVP prefers to wait for updated EU statistics, expected mid-December, according to party leader Karl Nehammer.
Economic challenges are mounting, with new data revealing that Austria’s GDP dropped by 0.6% in the third quarter—much worse than the 0.1% decline predicted by the Austrian Institute of Economic Research (Wifo). These figures, which informed earlier deficit forecasts, hint at even grimmer projections before Christmas. The expected budget deficit for 2023 is now likely to exceed the previously forecasted 3.7%, with 2025 estimates also rising above 4%.
The Green Party is strongly criticizing the coalition talks, claiming climate protection is being sidelined. “Three parties are at the table, and for none of them is climate protection a priority,” said Green Minister Leonore Gewessler on Wednesday. She also accused the ÖVP of planning to dismantle the Climate Ministry, despite its importance.
Chancellor Nehammer suggested streamlining ministries, but Gewessler defended her “super-ministry,” which was created to handle climate initiatives like the Klimaticket. Green leader Werner Kogler warned that necessary budget reforms could cut vital climate programs, even as Austria grapples with high gas dependency and expiring crisis-support measures.
With economic worries and climate disputes intensifying, the coalition faces growing challenges in finding common ground.
