Austrian far right and conservatives reach budget accord in a step toward new government

VIENNA (AP) — Austrian far-right leader Herbert Kickl and his prospective coalition partners said Monday that they have reached an agreement to bring down the budget deficit, an important first step toward what would be the country’s first post-World War II government led by the far right.

Kickl, whose Freedom Party won Austria’s parliamentary election in September, received a mandate to try to form a government with the conservative Austrian People’s Party a week ago. The latter had previously attempted to form a government without Kickl, but lengthy talks with two other mainstream parties collapsed — with the question of how to get the country’s finances in shape a key sticking point.

On Monday, the two parties said they had agreed to some 6.3 billion euros ($6.5 billion) in savings this year that would get Austria’s deficit below the 3% maximum mandated by European Union rules.

Kickl said that would be achieved without new taxes, “with measures against tax loopholes and privileges, particularly those of big players, with savings in the ministry apparatus, with an end to excessive subsidies.” The negotiators were vague about details as they still have to thrash out a full financial package.

“We have achieved together, in three days of intensive and good negotiations, what was not possible in about 100 days in a different political constellation,” Kickl said in a swipe at the mainstream parties’ previous efforts.

Negotiations to form a new government could still take weeks or months and aren’t guaranteed to succeed. In the meantime, Foreign Minister Alexander Schallenberg has taken over as interim chancellor after conservative Karl Nehammer, Austria’s leader for the past three years, resigned following his failed attempt to put together a new coalition.

Schallenberg was heading to Brussels Monday to meet senior EU officials as they face the prospect of an Austria led by the euroskeptic, Russia-friendly and anti-immigration Freedom Party.

He said ahead of his trip that “my message is clear: Austria is and remains a strong, reliable and constructive partner in the European Union,” and that the EU can continue to rely fully on Austria in foreign and security policy, the Austria Press Agency reported.

However, Schallenberg doesn’t plan to stay in the government under Kickl and can’t speak for the prospective new coalition.

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