The government’s turquoise negotiators now have to deal with the states. In view of the enormous budget gap, on the one hand, they call for a cash flow collapse with clear figures, and demand that the future federal government again intervene in financial matters.
A few days ago, the states were confronted with the fact that they would receive significantly less revenue shares from the federal government in 2025 than expected. As a result, they suddenly miss out on tens of millions of euros. The governor of Upper Austria, Thomas Stelzer, speaks of an “attack-like announcement”. It is not acceptable that countries that have already drawn up their budgets are confronted overnight with a changed numerical basis. Whoever forms the next federal government is expected to be involved again, Stelzer said after a meeting of state finance officials.
“It can’t go on like this”
Stelzer received help from his Salzburg colleague Wilfried Haslauer. “It cannot continue like this,” he said, calculating how the federal government withheld EU funds from the states. Austria received 500 million euros more from the European Development and Resilience Fund than originally planned: 3.9 billion instead of 3.4 billion euros. The states would be entitled to 16.8 percent of this. However, the federal government has so far refused to pass on its share of the additional 500 million. Haslauer demands “another level of interaction” from the next government.
Another example is the basic federal law for social assistance. If someone follows a training course, he or she receives a bonus. The federal government has determined that this allowance is no longer part of the assessment basis for social assistance. These are additional costs for countries with which no agreements have been made.
The budget chaos is due to the election campaign
As with the massive correction of the budget deficit, it is believed behind closed doors that the subsequent change in revenue shares is also due to “the election campaign”. Stelzer and Haslauer call on the federal government to revive the stability pact, which was suspended during the Corona period, including reforms. They also draw attention to the costs they will incur as a result of renaturation. The measures required here “must be supported by funds from the EU and/or the federal government, otherwise the states and municipalities cannot survive,” Stelzer said.
Exploratory break until Monday
Meanwhile, negotiations continued again on Wednesday at Palais Epstein. Behind closed doors, the ÖVP and SPÖ teams discussed the already known central issues and the further roadmap. The content dealt with the topics of migration and health – but also about money. The ÖVP reportedly proposed on Tuesday to draw up a list of political no-goes, for example in the field of tax policy. But apparently the two parties have not gotten that far yet.
The “constructive discussions” will continue on Monday, substantive overlaps will be identified and the involvement of other parties will be clarified. Until then, the parties will define negotiating groups for the thematic blocs – signs point to a good coalition.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
