Austria's Coalition Cuts: Climate Measures Targeted for Budget Balance

Austria's far-right Freedom Party and conservative People's Party outline plans to address budget deficits by scrapping climate initiatives and enhancing state revenue through increased dividends. The coalition targets savings in areas like the climate bonus and tax exemptions, while increasing revenue from state-owned firms.

The far-right Freedom Party and the conservative People's Party of Austria have announced strategies to improve state finances. Their plan involves eliminating climate-related measures and collecting higher dividends from state-owned enterprises.

During coalition talks spanning six days, both parties held a press briefing detailing plans to save 6.39 billion euros. The Freedom Party, known for its eurosceptic and Russia-friendly stance, secured about 29% of the vote in September's elections. They are set to build the government after previous attempts by centrist factions failed.

Key budget cuts include halting the 'climate bonus,' which saves nearly 2 billion euros. Additionally, they aim to collect 430 million euros more from state investments and save 1.1 billion euros across ministries. Plans also include ending tax exemptions for electric cars, extending windfall tax on power firms, and removing solar panel VAT exemptions.

(With inputs from agencies.)