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Coalition talks stall over a single line in the budget
Three parties agree on almost everything. The exception is a $2bn housing fund, and it may be enough to force a new election.
Political editor
5 min read
Negotiators left the parliament building shortly after midnight without an agreement.
After six weeks of negotiations, the three parties trying to form a government have agreed on energy policy, defence spending and a new transport plan. They cannot agree on one line.
The line funds a $2bn programme to buy and renovate empty apartments. One party calls it the heart of the deal. Another calls it a red line.
Why this line matters
Housing was the top issue for voters in the last election, according to exit polls. Every party promised action. Only one promised to spend this much, this fast.
Negotiators say a compromise is possible: a smaller fund, phased over four years, with private investment. But each party’s base is watching closely, and none wants to be seen as the one that blinked.
“You can explain a compromise on defence. You cannot explain a compromise on rent,” a senior negotiator said.
The deadline
If no government is formed by the end of October, the constitution allows the president to call a new election. Polls suggest a repeat vote would produce an almost identical parliament.
Daniel Szabo
Political editor
Daniel covers parliaments, coalitions and the policies that come out of them.
