The Unruffled Coalition: A Look into Austria's First Two Months with the Left-Centrist Government
Contention within the coalition surfacing ahead of the budget address?
In an unusual display of harmony, the turquoise-red-pink coalition government has managed to avoid major squabbles so far. However, the upcoming budget speech by Social Democrat Finance Minister Markus Marterbauer on May 13 will test the coalition's mettle. Each party must implement unpopular measures for their respective constituencies: the SPÖ faces cuts to pensions and social benefits, while the ÖVP and Neos face various tax hikes. If the coalition doesn't manage to sell their savings agenda convincingly, they risk undermining their own program.
Moreover, the coalition must demonstrate savings within the ministries, aiming to save 1.1 billion euros this year. The impact on various departments remains undisclosed, with Marterbauer refusing to reveal specifics before the budget speech, insisting that no one should feel left out.
Missteps Along the Way
Education Minister Christoph Wiederkehr (Neos) caused some friction recently by revealing early details about the education budget without coordinating with the Finance Ministry. This move caused irritation among the SPÖ and ÖVP, as the week prior to the budget presentation traditionally belongs to the Finance Minister. Marterbauer and Finance State Secretary Barbara Eibinger-Miedl (ÖVP) will hold a joint background discussion to brief media representatives on key details, showcasing a cooperative work environment in the Finance Ministry.
The Curious Case of Sepp Schellhorn
Some have speculated about the absence of Deregulation State Secretary Sepp Schellhorn (Neos), who is based in the Foreign Ministry, in the Finance Ministry's budget discussions. Schellhorn is said to have played a significant role in the budget restructuring talks. Despite his involvement in these discussions, Schellhorn will participate in a separate background discussion with State Secretaries Alexander Proell (ÖVP) and Michaela Schmidt (SPÖ) to discuss political priorities. His presence generates surprise as he is not part of the team of government coordinators, with Armin Hübner of the Neos fulfilling that role.
A Target on Schellhorn's Back
It seems that Sepp Schellhorn has been the focus of controversy within the coalition. Last week, tabloids fueled rumors that Schellhorn upgraded his service car, drawing attention to his preferences while ignoring other ministers' and secretaries' choices. This limited focus suggests that not everyone in the ÖVP and SPÖ wholeheartedly supports Schellhorn.
The Greens, however, have been supportive of Schellhorn's role in the budget discussions, citing his extensive involvement with the budget as justification for his inclusion in the negotiations.
A tension-filled State Secretaries meeting on Thursday will likely shed more light on the Greens' presence and the future of the coalition's budget agenda.
- The upcoming budget speech by Social Democrat Finance Minister Markus Marterbauer, on Tuesday, will test the coalition's ability to sell their savings agenda, to avoid undermining their own program.
- Education Minister Christoph Wiederkehr, from the Neos party, caused some friction within the coalition by revealing early details about the education budget, before coordinating with the Finance Ministry.
- Sepp Schellhorn, Deregulation State Secretary based in the Foreign Ministry, has been involved in the budget restructuring talks, but has thus far not been part of the Finance Ministry's budget discussions.
- Despite some controversy surrounding Sepp Schellhorn, the Greens have been supportive of his role in the budget discussions, citing his extensive involvement with the budget as justification for his inclusion in the negotiations.
