STORY: :: Austria’s centrist parties agree to form a coalition without the far-right election winner Freedom Party
:: February 27, 2025
:: Andreas Babler, SPO leader
:: “I am very happy and proud to be able to stand here with you both today to present our joint government programme. And not just because this cohesion and cooperation keeps Herbert Kickl and the right-wing extremist FPO out of the most important institutions of our country. Not only because this government will safeguard the rule of law and democracy in Austria. Not only because this long phase of forming a government has finally come to an end. No, but because we are now doing the right thing together.”
:: Vienna, Austria
In a deal that should bring to a close Austria’s longest wait for a new government since World War Two, the center-right, liberal and center-left parties unveiled a program including tax rises on banks and energy companies, spending cuts and immigration curbs.
The three parties had already tried and failed to form a coalition, after which the eurosceptic, Russia-friendly Freedom Party (FPO) was given a chance to form a government but also failed.
The coalition plans to increase a tax on banks and extend taxes on windfall profits of power fossil-fuel companies, as well as scrapping environmental measures such as a value-added tax exemption for solar panels.
Spending would be trimmed through pensions reform, and immigration curbed by halting family reunification visas for immediate relatives of refugees.
The three-party government, Austria’s first since the late 1940s, is due to take office on Monday, provided all parties approve the deal.