However, they could not agree on whether this should take place within the framework of an EU deficit procedure or completely independently.

The SPÖ wants a procedure because the consolidation path is initially gentler, but the NEOS insist on a variant without EU involvement. The ÖVP is likely to be somewhat more flexible than the potential liberal partner. Negotiators fear a loss of reputation for Austria with effects on the ratings, and that the FPÖ could politically exploit an EU procedure.

The difference between choosing a procedure or not is particularly significant in the first year. With a procedure, only 3.9 billion would have to be saved in 2025, but without it, it would be 6.3 billion. At the end of the seven years, the levels would be similar - with a procedure, it would be 18.4 billion, without it, 18.1 billion.

Further Agreement

The second agreement of the long negotiation day was that they want to tackle a double budget for 2025 and 2026. However, what this will look like could not be settled on Friday. Negotiations are to continue in the coming days - in a "very constructive and orderly" manner, according to VP leader Karl Nehammer.

The SPÖ chairman also put on a good face for the negotiation day, despite the not exactly overwhelming progress. It was a moving few hours with "a lot of movement" in terms of budget consolidation, explained Andreas Babler. NEOS chairwoman Beate Meinl-Reisinger was even more terse than her successors in the separately presented statements. She recognised further major challenges and emphasised that her party had "advocated" the implementation of lighthouse projects.

Speculations Before Discussion

Before the discussion, there had been speculation in some places that the NEOS could throw in the towel as early as Friday because no major projects were in sight. On Friday itself, there were rather indications that the SPÖ could withdraw because they did not see any movement in terms of wealth taxation from ÖVP and NEOS.

That was not seriously discussed. For a long time, it looked as if nothing more would come out on Friday than the commitment to try again after Christmas. Only in the later evening hours was it possible to agree on a minimal compromise, which essentially corresponds to the seven-year path envisaged by ÖVP and SPÖ.

ÖVP, SPÖ and NEOS at Van der Bellen

The meeting was accompanied by discussions of the three party leaders with Federal President Alexander Van der Bellen at the Hofburg. The head of state had received them each for individual talks, Nehammer and Babler in the morning, Meinl-Reisinger in the early evening. From the Presidential Chancellery, it was said that regular exchange had been agreed between Van der Bellen and the negotiating party leaders, including this appointment before Christmas.

How things will proceed specifically is open. The talks are likely to be handled in smaller groups for the time being. A meeting of the steering group is not expected until after the Christmas holidays, at the earliest on Friday. The NEOS are already expected to meet for a committee meeting over the weekend, according to media reports.

(APA/Red)

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