Breaking the political deadlock in Austria

The recently reached agreement to form a coalition government has broken the political stalemate that lasted nearly five months in Austria. Three parties, including the People's Party (ÖVP), the Social Democratic Party (SPÖ), and the New Austria and Liberal Forum (NEOS), have announced the “common programme” of the new government.

Leader of the Austrian People's Party Christian Stocker (C), Social Democratic Party Chairman Andreas Babler (L), and NEOS party leader Beate Meinl-Reisinger (R) attend a press conference in Vienna, Austria, on February 27, 2025.

The far-right Freedom Party (FPÖ) led the Austrian parliamentary elections at the end of September 2024, followed by the ÖVP, SPÖ, and NEOS.

However, the FPÖ did not gain enough votes to form a new government on its own. Meanwhile, both the ÖVP, SPÖ, and NEOS were unwilling to form an alliance with the FPÖ. Therefore, the task of forming a new government was entrusted to the ÖVP by Austrian President Alexander Van der Bellen.

Early this month, negotiations between the three parties broke down after NEOS expressed disagreement with the proposed economic policies. This led to the resignation of Karl Nehammer, who was then Chancellor of Austria and leader of the ÖVP.

Subsequently, the FPÖ had the opportunity to negotiate with the ÖVP but also failed to achieve results due to policy differences, including refugee issues.

The inability of the parties to reach an agreement on policies pushed Austria's political landscape into instability, raising concerns about a new election. In an effort to find common ground, the ÖVP, SPÖ, and NEOS resumed negotiations and reached an agreement.

When announcing the formation of the coalition, the leaders of the ÖVP, SPÖ, and NEOS highlighted the action programme of the new government.

Compared to the policies of the current ruling coalition between the ÖVP and the Greens, the new government may reduce its focus on climate and environmental issues.

In the recently announced action programme, the content related to combating climate change and environmental protection accounts for less than one-fifth of the current government's policies. However, the goal of achieving carbon neutrality by 2040 remains intact.

Austria's new government will introduce stricter regulations for refugees. This has been one of the top concerns and a point of contention among parties during the negotiations.

For refugees, the new government plans to suspend family reunification applications for refugees and consider a ban on headscarves for girls up to the age of 14. Austria will also establish repatriation centres and provide temporary accommodations for asylum seekers who are rejected.

In addition to migration issues, Austria's tight budget has been a long-standing burden. Austria must comply with the European Union's financial rules, including the task of curbing budget deficits.

The efforts to reduce spending by billions of euros make it difficult for the government to allocate budgets and implement policies.

To address this challenge, the new coalition government plans to impose additional taxes on the banking sector.

SPÖ leader Andreas Babler believes that increased tax revenues will alleviate pressure on balancing the budget. Furthermore, the ÖVP, SPÖ, and NEOS will introduce innovations in addressing social issues such as poverty, housing, and employment.

Members of Austria's new government are expected to take office next week.

While the ÖVP and SPÖ have extensive experience in previous coalition governments, NEOS has never participated in the country's executive branch.

In the recent Austrian parliamentary elections, the ÖVP and SPÖ secured just enough seats for a minimum majority, with 92 out of 183 parliamentary seats, while NEOS holds 18 seats.

Therefore, consensus among these three parties plays a crucial role in maintaining a stable government and implementing new policies to lead the country through challenges.

NDO