As expected?

Red-White-Red Climate Deal Sparks Outrage Within the ÖVP

Chancellor Christian Stocker joined the negotiations on Friday and laid down the law.(Bild: Eva Manhart)

After days of wrangling, the government has reached an agreement on climate legislation and drought relief. But fierce resistance is mounting from business circles within the ÖVP.

The three-party coalition had actually hoped that its major climate deal, reached after Friday’s drought summit, would finally demonstrate unity. But no sooner had the agreement been announced than the ÖVP was bombarded with protests from within its own ranks.

The Austrian Chamber of Commerce, the Federation of Austrian Industries, and the Austrian Economic Association are up in arms over Austria potentially rushing ahead on climate neutrality. WKÖ Secretary General Jochen Danninger makes it clear: “Anything that goes beyond EU targets is unacceptable to the business community.” Economic Federation Secretary General Tanja Graf warns against climate protection “that uses a sledgehammer against our economy.”

Climate Neutrality, According to the Federation of Austrian Industries, Is “Shooting Ourselves in the Foot”
The Federation of Austrian Industries (IV) reacts just as critically. Achieving climate neutrality as early as 2040—compared to the European target year of 2050—would be “shooting ourselves in the foot.” A model calculation cited by the IV suggests that up to 45,000 jobs and up to 13 billion euros in economic output are at risk. The negotiated location clause is also “vague and toothless.”

Jochen Danninger is one of the biggest critics of the new climate deal.(Bild: Eva Manhart)

The ÖVP thus remains internally divided; shortly after the agreement was reached, Chancellor Stocker already said he could not “foresee whether the business community would approve of the agreement.” Meanwhile, the SPÖ and NEOS are celebrating climate neutrality by 2040 as the core of the agreement. “Five years of stagnation are enough. Now we’re taking action,” declare SPÖ leader Andreas Babler and federal executive director Klaus Seltenheim. NEOS caucus leader Yannick Shetty calls it a “milestone.”

Chancellor Christian Stocker joined the negotiations on Friday and laid down the law.(Bild: Eva Manhart)

The conservative members of the government, on the other hand, are conspicuously emphasizing different aspects of the hard-fought agreement. Economy Minister Wolfgang Hattmannsdorfer focuses primarily on the legally binding EU interim target of a 90 percent reduction in emissions by 2040. Further ambitions should only be pursued if they do not jeopardize competitiveness and jobs. State Secretary Elisabeth Zehetner emphasizes European unity “rather than an Austrian special path.”

“They don’t even know what they’ve decided”
For the FPÖ, the differing wording is grist for the mill. “Barely an hour after reaching an agreement, the government is already contradicting itself,” scoff MPs Thomas Spalt and Paul Hammerl. While the SPÖ is announcing climate neutrality by 2040, the ÖVP is merely talking about a 90 percent reduction in emissions.

FPÖ leader Herbert Kickl views the overall package as a “lame compromise” to begin with. He argues that the ÖVP is sacrificing the state’s economic standing and agreeing to a climate deal in exchange for what he considers insufficient drought aid.

In contrast, Paul Nemecek, director of the Lower Austrian Farmers’ Association, defends the support for agriculture. While hail insurance is important, he says, it “falls far short” of cushioning the damage and economic consequences of the extreme drought this summer. The aid is not being distributed indiscriminately, but rather is designed to safeguard family-run farms and, with them, the food supply.