After months of political negotiations, Austria is set to have a new government as the ÖVP, SPÖ, and NEOS have reached a coalition agreement.
The three-party alliance, bringing together the centre-right, centre-left, and liberal parties, will present its official government programme in parliament this Thursday.
How will the new coalition be structured?
The coalition will divide government responsibilities with six ministries each for the ÖVP and SPÖ, while NEOS will take two. In addition, seven state secretaries are expected to be appointed.
BACKGROUND: Austria moves closer to a government as budget deal takes shape
The new government could be sworn in as early as Monday if all party committees approve the coalition agreement.
A key point of discussion has been the finance ministry, which the SPÖ is set to control for the first time in 25 years. The party is still debating who will take the role, with Vienna City Councillor Peter Hanke initially considered a frontrunner.
The ÖVP has already settled most of its appointments, with Christian Stocker confirmed as chancellor. Interior Minister Gerhard Karner, Defence Minister Klaudia Tanner, and Agriculture Minister Norbert Totschnig are expected to retain their positions.
For NEOS, Christoph Wiederkehr is expected to take over as education minister, while Beate Meinl-Reisinger is likely to become foreign minister, according to Der Standard. NEOS MP Josef Schellhorn has confirmed that he will become state secretary for deregulation.
What are the central policies of the new government?
The coalition has outlined key education, asylum, and economic reform policies.
Mobile phones will be banned in schools, and all-day schools will be expanded. Parents will also be held more accountable if their children cause disruptions in the classroom. The government plans to introduce an opportunity index to promote educational equality, as reported by ORF.
Under asylum policy, rejected asylum seekers will be housed in return centres to prevent them from absconding before deportation. The coalition has also agreed to suspend family reunification for asylum seekers temporarily.
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On economic issues, the government plans to earmark housing subsidies to ensure they are explicitly used for housing construction. Discussions are also underway about reducing non-wage labour costs. The Public Employment Service (AMS) budget is expected to increase.
Will the coalition hold?
This is not the first attempt at a three-party coalition in Austria. Previous negotiations between the ÖVP, SPÖ, and NEOS collapsed due to deep policy disagreements, and those divisions remain.
The ÖVP and SPÖ have conflicting views on taxes, social policies, and Austria’s EU role, while NEOS has pushed for economic reforms that neither major party fully supports.
Internal tensions exist within the SPÖ, particularly between party leader Andreas Babler and Vienna Mayor Michael Ludwig, who are vying for influence over key ministerial posts.
NEOS must still secure a two-thirds majority from its members to approve the agreement, with a vote scheduled for Sunday. If the party rejects the deal, the coalition could unravel before it even begins, as reported by ORF.
What happens next?
The coalition agreement will be presented this Thursday, with ministerial appointments expected to be finalised by Friday.
Austria’s new government could take office next week if all party committees approve the deal. However, the country may face further political uncertainty if disagreements delay the process.
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