Austria's Coalition Triumph: Budget Deal Reached to Avert EU Penalty

Austria's Freedom Party and People's Party have agreed on budget measures to prevent exceeding the EU deficit limit. The Freedom Party, victorious in recent elections, and the People's Party focus on spending cuts instead of tax hikes to address a potential 3.7% GDP deficit in 2024.

Austria's far-right Freedom Party and the conservative People's Party announced on Monday that after three days of negotiations, they successfully reached a coalition agreement to address the country's budget deficit.

The eurosceptic Freedom Party, which won 29% in the recent elections, began coalition talks with the People's Party after previous centrist efforts failed. Their primary goal was to reduce the budget deficit to comply with the EU's 3% limit, avoiding penalties.

The parties agreed on spending cuts to save 6.3 billion euros this year. Freedom Party leader Herbert Kickl assured no tax increases for the public, with adjustments focusing on addressing tax privileges and loopholes. Details are expected to be released soon.

(With inputs from agencies.)