VIENNA (dpa-AFX) - The right-wing FPö and the conservative ÖVP want to significantly reduce subsidies for electric cars, solar panels and other environmental measures in Austria. The planned cuts are part of the state budget consolidation plan that both parties presented as part of their coalition talks.

The two parties are currently negotiating a coalition under the leadership of the FPÖ. The right-wing populists won the election in the fall. Since 2020, the ÖVP and the Greens had ruled together and implemented a series of climate and environmental protection measures.

The Freedom Party and the ÖVP now want to "reduce environmental demands to a level that existed before 2020," announced ÖVP parliamentary faction leader August Woginger. The aim is to save almost 500 million euros this year.

Billions in savings

In addition, the two parties want to reduce tax breaks for electric cars and eliminate the VAT exemption for solar panels. The one-year free pass for all 18-year-olds on public transportation is also to be abolished.

Right-wing populists and conservatives also announced the end of the so-called climate bonus in order to save almost two billion euros. The bonus had previously been used to return the CO2 tax to the population. Economists had criticized the payments as too expensive and not targeted enough.

At the beginning of the week, FPÖ and ÖVP had announced a budget consolidation package of 6.3 billion euros for 2025 and submitted the plan to Brussels. They hope this will prevent an EU deficit procedure for Austria. In addition to cuts in the environmental sector, the parties also want to make savings in government ministries.