First government meeting on drought ends without result

The Austrian government held its first meeting on drought relief on Friday, August 14, 2026, but no concrete measures were agreed upon. The discussion focused on financial support for farmers affected by severe dry conditions, with ongoing disputes over funding mechanisms and eligibility criteria. Agriculture Minister Norbert Totschnig (ÖVP), along with SPÖ State Secretary Michaela Schmidt and NEOS National Council member Karin Doppelbauer, met without reaching a decision on new aid packages. A further schedule was not announced, according to sources close to the negotiations. The prolonged drought, combined with high temperatures, has placed immense pressure on Austria’s agricultural sector this year. Farmers have faced significant crop losses, with damage estimates exceeding one billion euros. Of these, 400 million euros are covered by insurance, while 300 million remain uninsured and another 300 million are not insured at all. The state covers 55 percent of premium costs for drought insurance, contributing around 160 million euros in 2025 alone. With approximately 101,000 farms operating in the country, half of which are part-time operations, the need for targeted assistance has become urgent. Schmidt emphasized that progress has been minimal, stating that responsibility now lies with the minister and coalition partners. She rejected the idea of unconditional financial handouts, arguing that such policies would lead to inefficiency. Instead, she called for a climate protection law, which has been under discussion for over a year. “This law is overdue,” she wrote in a statement. Meanwhile, Totschnig acknowledged the limitations of the current budget, noting that previous austerity measures have left little room for additional spending. He ruled out shifting funds from diesel subsidies for agriculture, calling such a move a redistribution of resources rather than a solution. The debate over whether unregistered farmers should receive compensation remained unresolved. Totschnig argued that without insurance, there is no mechanism to compensate for weather-related damages. He proposed supplementary support, such as interest rate reductions on business equipment loans, to help cover costs related to seeds and feed. However, he admitted that despite four austerity packages over the past 16 months, more money is still needed. Schmidt, meanwhile, stressed that the SPÖ supports aid based on “targeted impact, efficiency, and long-term sustainability.” She warned against excessive funding, pointing out that the state already subsidizes 55 percent of insurance premiums. NEOS representatives expressed concerns about the lack of immediate financial relief, emphasizing their focus on long-term solutions rather than temporary fixes. They noted limited fiscal flexibility, with no fresh funding available. Similarly, Fiscal Council chief Christoph Badelt echoed this sentiment, highlighting the constraints on public finances. The situation has drawn sharp criticism from FPÖ leader Herbert Kickl, who accused the government of leaving farmers to suffer. He described the drought as a natural disaster comparable to avalanches, floods, or landslides, urging the three ruling parties to finalize a package by Sunday so that aid can reach affected farmers immediately. The economic outlook for 2025 showed some positive signs, with higher incomes reported due to better harvests and increased prices. Yet, the ongoing crisis underscores the fragility of the agricultural sector amid extreme weather conditions. As the government continues to grapple with how best to allocate limited resources, the challenge remains to balance immediate relief with sustainable policy reforms.