Coalition negotiations on climate law and drought aid to continue

Points of dispute: Climate law and drought aid

At the center is a climate law that is intended to bindingly define the future reduction path for greenhouse gas emissions in Austria. The parties disagree on the extent to which and with what intermediate targets such requirements should be incorporated into the law. The negotiators point to the extent of the damage already incurred in agriculture as an argument for swift action. The following warning was relayed from the negotiations: „Wenn allein heuer in der Landwirtschaft Schäden in Milliardenhöhe drohen, kann es keine Ausreden und keine weiteren Verzögerungen geben."

Counter-financing still unresolved

Parallel to the climate law, the coalition partners are negotiating a package of drought aid for farmers affected by drought. In addition to direct subsidies, support is also planned for investment loans as well as for the purchase of seeds, fertilizers and animal feed. This is intended to secure the liquidity of farms that, due to lack of rainfall, have in some cases suffered massive crop losses.

What remains unresolved, however, is the question of how this drought aid is to be counter-financed. An additional burden on the budget is on the table, which would have to be fitted into the ongoing budget path. Clarifying this open financing question is considered one of the prerequisites for the package to come about in its planned form. The negotiating partners have so far not agreed on a concrete model.

Business and the environment as negotiating partners

Stakeholders from the business community are asserting their respective interests in the ongoing talks. The Wirtschaftskammer and the Industriellenvereinigung are reportedly raising concerns regarding competitiveness and the cost burden on companies. On the other side, environmental organizations and parts of the agricultural sector are pushing for binding climate targets and swift aid. The negotiations are thus moving between fiscal, ecological and economic policy considerations.

Observers assess the time pressure as high: If the climate law is not concluded in the current round of negotiations, a delay of the measures planned to become effective at the beginning of 2027 threatens. With regard to drought aid, farmers see the beginning sowing or preparation phase for the next season at risk, which is why they are pushing for an agreement as soon as possible. According to assessment from negotiating circles, the question of special financing could represent one of the crunch points of Thursday's round.