FPÖ and ÖVP Agree on €6.3 Billion Expenditure Cuts Without New Taxes to Avert EU Deficit Procedure

Jan 13, 2025, 09:09 AM

The Freedom Party of Austria (FPÖ) and the Austrian People's Party (ÖVP) have agreed on a €6.3 billion savings package to avert a potential EU deficit procedure. The package aims to achieve budget consolidation without introducing new taxes, focusing largely on expenditure cuts, including a reduction of subsidies. Key measures include the elimination of the climate bonus and adjustments to educational leave. The agreement was reached within just three days of negotiations. FPÖ leader Herbert Kickl and ÖVP leader Christian Stocker presented the budgetary roadmap, signaling a significant step towards forming a coalition government. The savings aim to 'save on the system and corporations instead of citizens,' creating room for maneuver from 2026 onwards. However, details of the plan have been withheld from citizens.