Mixed results

Gaping budget hole as coalition sticking point

Babler, Nehammer and Meinl-Reisinger will hold internal meetings over the next few days.(Bild: APA/HELMUT FOHRINGER)

The first negotiation marathon of the Zuckerl coalition comes to an end on Friday with mixed results: turquoise, red and pink are not always on the same page. The economy and budget are the main sticking points.

Two months will soon have passed since Federal President Alexander Van der Bellen tasked ÖVP leader Karl Nehammer with forming a government. So far, only an axis of powerful decision-makers in the ÖVP, the SPÖ and the NEOS who want to govern together has formed. Even the constructive forces in all camps do not yet seem to be entirely clear on how this will ultimately work.

Economy "flashing red"
The vast majority of the 300 or so negotiators in the Zuckerl coalition have now stopped work, at least on Friday. According to reports, "good results were achieved" in many subgroups and the foundations for further cooperation were laid. However, agreements are not in sight everywhere. In the key economic negotiation cluster, the negotiating lights are reportedly flashing red because the ÖVP and NEOS cannot reach an agreement with the SPÖ.

The biggest sticking point for the coalition remains the budget. The SPÖ, for example, is in favor of accepting an EU deficit procedure because this would provide more leeway in terms of spending. The question of how to consolidate the budget will decide the fate of the Zuckerl coalition.

Hoping for "big wins" and internal meetings
This is also because it depends on which projects can be implemented despite the need for savings - and which cannot. In the case of measures such as the second compulsory kindergarten year - as reported by the "Krone" - it appears to be unclear whether this can be offered free of charge to parents. On other points, however, the three parties are more or less in agreement. "We were the most courageous when it came to integration and security," reveals a prominent negotiator. Even the planned integration package, which Krone readers are already familiar with, is expected to be a "big hit".

At the beginning of next week, the party leaders want to discuss the results of the subgroups and finalize the budget framework. All the conditions for the deficit procedure should then also be in place. Internal party meetings will take place beforehand. The NEOS will retire for a closed meeting on Friday. Nehammer and SPÖ leader Andreas Babler must give their executive boards an update in online meetings on Monday.