Tense Budget Negotiations Continue in Austria

The Austrian government is nearing the completion of its budget, with the accompanying "Budget Accompanying Law" expected to be sent for parliamentary review around the upcoming weekend. While details are largely finalized, insiders report a tense atmosphere surrounding the negotiations.

The budget package includes several consolidation measures. These involve increased taxes on banks, corporations, alcohol, and real estate. Additionally, the family bonus will be reduced for children over four years old unless both parents work, and the "Gewinnfreibetrag" (profit allowance) will be cut. The private use of company electric cars will also become more expensive, and the indexation of family benefits will be suspended. However, a reduction in ancillary wage costs is also planned.

Negotiations reportedly faced delays, with one significant point of contention being the reform of the justice system's leadership, a matter the NEOS party has been pushing. Although only indirectly related to the budget, this reform played a role in the discussions. The review period for the legislative package is expected to be brief, given the impending budget speech.

Despite protests regarding cuts to university funding, which are not expected to be reversed immediately, the SPÖ (Social Democratic Party of Austria) is attempting to shift focus. Social Minister Korinna Schumann (SPÖ) highlighted planned "offensive funds" for the care sector, with approximately 100 million euros per year allocated for the next two years to expand services.