Austria's 3 parties agree to form coalition government after 5 months of negotiations

Europe
Fri, 28 Feb 2025 4:04 GMT
Austria's center-right People's Party, Social Democratic Party, and liberal New Austria Party present their agreement to President Alexander Van der Bellen.
Austria's 3 parties agree to form coalition government after 5 months of negotiations

Parties reached consensus on tackling budget deficit, with planned spending cuts, reductions in bureaucracy, and elimination of some social benefits, says incoming Chancellor Stocker.

Coalition to introduce headscarf ban for underage girls as part of efforts to combat extremism.

Austria’s center-right People’s Party (OVP), the Social Democratic Party (SPO), and the liberal New Austria Party (NEOS) agreed on Thursday to form a coalition government, nearly five months after the general elections.

The leaders of the three parties presented their agreement on a coalition government at a press conference in the parliament building, which had been submitted to President Alexander Van der Bellen earlier in the day.

The document outlines key policies on economic reform, migration, and social issues.

OVP leader and incoming Chancellor Christian Stocker described the coalition as a union of "constructive forces."

He stressed that the parties have reached a consensus on tackling the country’s budget deficit, with planned spending cuts, reductions in bureaucracy, and the elimination of some social benefits.

He also confirmed that the SPO’s proposal to lower additional taxes on workers would be implemented within budgetary limits. 

Tighter migration policies and headscarf ban  

Stocker announced stricter asylum and integration measures.

Accepted asylum seekers will undergo a mandatory three-year integration program with limited access to social benefits.

The government will also suspend family reunification for refugees and halt the approval of new asylum applications.

Rejected applicants will be held in deportation centers.

Additionally, the coalition will introduce a headscarf ban for underage girls as part of efforts to combat extremism.

While details were not provided, Austrian media reported that the ban would likely apply to girls under 14.  

Economic and social policies  

SPO leader Andreas Babler said the government would freeze rent increases for a year and introduce new taxes on banks, energy companies, and real estate firms to address budgetary challenges.

He also highlighted efforts to prevent youth radicalization on digital platforms like TikTok.

NEOS leader Beate Meinl-Reisinger emphasized education reforms, including mandatory kindergarten attendance for two years to ensure equal learning opportunities.

The agreement must be approved by NEOS’s party leadership on Sunday before the new government is sworn in on Monday.

The Cabinet will include 14 ministers and seven state secretaries.

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