Government negotiators remain far apart as SPÖ pushes wealth taxes

The centre-right ÖVP, centre-left SPÖ, and liberal NEOS remain at odds over how to address Austria’s budget gap as negotiations entered a critical phase on Tuesday. Der Standard reported that while paths for savings have been identified, the parties are divided on new revenue sources. The SPÖ continues to advocate for wealth-related taxes, citing a study showing 84 percent of Austrians support broader contributions from wealthier citizens.

SPÖ leader Andreas Babler stressed the need for significant efforts on both spending and revenue, while NEOS leader Beate Meinl-Reisinger admitted, “There is no government under the Christmas tree.” Chancellor Karl Nehammer described the €250 billion budget as requiring careful and emotional negotiations.

The SPÖ’s commissioned study highlights public support for a millionaire’s tax and special levies on large corporate profits. However, the ÖVP and NEOS have so far resisted such proposals.

Austria’s economy shrinks, but Vienna and Salzburg outperform

Austria’s economy struggled in 2023, with clear regional disparities, according to ORF. Statistics Austria revealed on Tuesday that Vienna and Salzburg bucked the trend, largely thanks to tourism and unique economic factors, while Upper Austria suffered the most due to its reliance on industry.

Vienna’s economy grew by 2.5 percent, aided by the relocation of Brazilian pulp giant Suzano’s European headquarters to the capital. Salzburg’s economy held steady due to tourism, while Upper Austria’s GDP contracted by 1.7 percent. Other states, including Carinthia and Burgenland, faced declines driven by slumps in construction and trade.

WIFO forecasts a further decline in Austria’s GDP in 2024, with industrial production and construction remaining weak. Employment also showed mixed results, with Vienna, Salzburg, and Tyrol growing, while Upper Austria, Carinthia, and Styria reported job losses.

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Austria promises climate plan after EU delays

Austria’s long-overdue National Energy and Climate Plan (NEKP) will be submitted “as soon as possible,” Climate Minister Leonore Gewessler (Greens) said on Tuesday. Die Presse reported that Austria missed the June deadline, leading to EU infringement proceedings.

The delay stems from disagreements within the ÖVP-Greens coalition. The EU has demanded more explicit strategies for how Austria will achieve its 48 percent emissions reduction target by 2030, diversify energy supplies, and reduce its reliance on Russian gas. Gewessler stated she hopes to finalise the plan soon.

Almost half of EU member states have yet to submit their final climate plans, but Austria’s delays have drawn particular scrutiny given its ambitious climate targets and ongoing political disputes.

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FPÖ calls for values training for teachers to “save Christmas”

The Freedom Party (FPÖ) proposed mandatory values training for teachers on Tuesday, arguing that Austria’s traditions, such as Christmas and St. Nicholas, are being undermined. Kurier reported that FPÖ MP Martin Antauer criticised educators for allegedly neglecting customs in favour of inclusivity.

The proposal follows ÖVP provincial governor Johanna Mikl-Leitner’s recent mandate requiring St. Nicholas visits in Lower Austrian kindergartens. ÖVP officials rejected the FPÖ’s claims, with party manager Matthias Zauner stating teachers “do a great job” of preserving traditions.

The debate comes amid a growing political focus on values and integration ahead of Lower Austria’s municipal elections in January.

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Vienna police seize kilos of cannabis from public bus

Vienna police confiscated nine kilograms of cannabis smuggled into the city aboard a public bus on December 16th, Vienna.at reported. A tip-off from Bavarian border police led officers to search the bus arriving from Amsterdam, where they discovered the drugs in two suitcases.

A 35-year-old Bulgarian man, previously arrested with one kilogram of marijuana, was taken into custody. Police suspect the drugs were being transported for distribution in Vienna, and investigations are ongoing.

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ÖBB increases train capacity for Christmas travel

Austrian Railways (ÖBB) will offer 80 additional train connections and 42,000 extra seats during the busy holiday period from December 20th to January 6th, ORF reported. The increase comes as ÖBB prepares for one of the year’s busiest travel seasons.

Travellers are encouraged to reserve seats early via ÖBB’s website, app, or ticket counters. The reopened railway line through Tullnerfeld, which was closed after the September floods, is also expected to ease travel on westbound routes.

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Croatian police arrest Austrian for smuggling corpse

Croatian authorities arrested a 65-year-old Austrian man at the Gunja border crossing in late November after he attempted to smuggle a dead woman into Austria. AFP reported that border officials became suspicious when the 83-year-old passenger appeared unresponsive.

A coroner confirmed the woman had died in Bosnia, and the driver reportedly sought to avoid formalities associated with transporting a corpse. Croatian prosecutors are now handling the case, while local media described the man as the deceased’s legal guardian.

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