The parties have made compromises on various policy areas and present themselves as a stable, pro-European government. The new cabinet will be presented in Vienna on Monday.
In an earlier round of negotiations, the three parties had failed to reach an agreement on crucial issues such as economic reforms and migration policy. This time, however, they succeeded, partly thanks to concessions on fiscal and social matters.
An important element of the coalition agreement is the retention of the current agricultural policy. The parties have agreed that the support measures for farmers will largely remain intact. This means that Austrian agricultural subsidies and environmental policies will change little. Norbert Totschnig of the ÖVP will remain Minister of Agriculture.
In the field of climate policy, the new coalition aims to keep Austria aligned with European climate goals. There will be additional support for renewable energy, and subsidies for sustainable agriculture will be expanded. Although the SPÖ and NEOS wanted stricter measures, the ÖVP ensured that the impact on industry and agriculture remains limited.
Economically, the focus is on moderate reform policies. The coalition parties want to introduce tax cuts for the middle class and small businesses while also investing in digitization and innovation. The ÖVP insisted on maintaining budgetary discipline, while the SPÖ secured guarantees for social security and minimum wages.
Admission of asylum seekers was one of the most contentious issues. The parties agreed to tighten border controls and increase integration requirements for newcomers.
Although the parties differ ideologically, they present themselves as a pragmatic and stable government team. They intend to maintain a pro-European course and strengthen cooperation with neighboring countries. The FPÖ has sharply criticized the coalition formation, calling it an attempt to disregard the election results. However, the new government hopes to ensure stability and guide Austria through economic and societal challenges.