LH-Conference: Struggle for Reforms, Few Resolutions

Nevertheless, both the chairman of the state leaders, Mario Kunasek (FPÖ), and Vice Chancellor Andreas Babler (SPÖ) extensively praised the constructive atmosphere during the discussions at the Styrian Schloss Seggau. There is still no clarity regarding state finances. The Stability Pact is planned to be concluded this year as intended.

Babler highlighted as a result that there is agreement to disentangle the administrative responsibilities in the education sector. Thus, all school staff should be consolidated in one place. Additionally, from 2027, there will be a nationwide uniform system for the first time, which will direct patients to the right place, thereby reducing waiting times for doctor appointments.

Commitment to Budget Consolidation

It was assured by all parties that the path of budget consolidation must continue: "Otherwise, we will run out of leeway," emphasized Kunasek. NEOS chairwoman Beate Meinl-Reisinger stressed that there is a clear consensus that everyone must leave the debt path: "We are all in the same boat." Before the talks, she had expressed herself much more critically. "We as the federal government cannot do everything, consolidation and reforms, for the states," she was quoted by the "Kleine Zeitung." Tyrol's governor Anton Mattle (ÖVP) in turn called for more speed in the reforms.

Specifically, the federal and state governments have agreed on further "interim results" on the path of reform partnership, according to Governor Peter Kaiser (SPÖ). In the energy sector, a so-called overriding public interest is to be legally anchored so that approval procedures and construction projects can proceed more quickly. Network costs are to be reduced, and a consolidation of network companies will also be advanced. The energy pricing structure is also to be changed.

Structural Reform in Education and Health Announced

In the health sector, a reduction of bureaucracy in the health insurance system, a uniform service catalog, a nationwide general contract, and a harmonization of service law and salary framework were announced. Private doctors are to be better integrated into the public health system, and graduates of medical studies are to be prioritized for public service through measures. In the first quarter of 2026, concrete implementation options for legal adjustments in the integration of outpatient, ambulatory, and inpatient areas are to be developed.

In the area of constitutional and administrative cleanup, a joint IT procurement structure called GovTech Austria is expected to bring savings. Additionally, a debureaucratization initiative is to be launched at all levels. The steering group will meet in December 2025 to initiate the legal adjustments of the resolutions.

States Demand Public Transport Ticket and More School Assistance

Apart from the agreements with the federal government, the states have also made resolutions that they are bringing to the government - for example, the long-term security of drug supply and the possibility of a cross-state public transport ticket are desired. In the area of school assistance, the states are demanding mitigation of rising costs and an increase in socio-educational resources. In the area of disaster protection, emergency organizations should in the future receive equal treatment in terms of deployment compensation, and technically feasible helicopter landings in bad weather should also be possible. Overall, the regular agenda of the LH conference comprised 21 points, all of which were unanimously decided.

Much Talked, Little Decided

For the consultations with the federal government, the finance minister was also involved on Thursday. Overall, the informal talks lasted until about 1 a.m. and, according to Kunasek, went well. On Friday, discussions continued until noon, before the results of the consultations were presented in a joint press conference.

NEOS Hold States Accountable, Criticism from FPÖ

Meanwhile, the NEOS are holding the state leaders accountable. In a joint statement, the nine state spokespersons demand "more decisive action from the governors in the budget crisis." Currently, the federal government is handling more than 90 percent of the budget consolidation, now it's the states' turn, the statement says. The pink state spokespersons see "savings potential everywhere in the country that can be realized without reducing services, through more transparency, modernization of administration, and the disentanglement of inefficient federal structures."

FPÖ currency spokesman Alexander Petschnig expressed sharp criticism regarding the recent budget deficit figures. "If countermeasures are not taken now, higher interest rates, worse ratings, and ultimately even more burden on citizens are threatened," he warns in a release.

(APA/Red)

This article has been automatically translated, read the original article here.