Austrian Coalition Delays Finalization of Research Funding Pact Until Next Year

The Austrian government has postponed the finalization of its planned Research, Technology, and Innovation (RTI) Pact, originally intended to be agreed upon this autumn for the 2027-2029 period. According to the provisions of the Research Financing Act, such agreements are necessary to ensure long-term, growth-oriented financial support for the country's research and innovation sectors. Despite expectations for a decision by the end of the year to provide planning security for research institutions and businesses, the process has encountered significant delays.

The RTI Pact is negotiated between the federal government and key national research and innovation organizations. The legislation mandates that funding must not decrease and should promote growth in research and innovation. However, current fiscal constraints have presented considerable challenges for the responsible ministries, namely Science, Infrastructure, and Economy. The ministries have been searching for several hundred million euros in additional funds to meet the stipulated financial obligations.

The Ministry of Science has already outlined a financial plan and communicated it to the Ministry of Finance. Part of this plan includes a cost-saving agreement with universities, which will free up approximately 146 million euros in 2027. These funds are intended to be allocated through the Austrian Science Fund (FWF) on a project basis, allowing universities to apply for research grants. This approach is designed to ensure that the funds ultimately return to the universities via competitive research funding.

The Ministry of Economy, led by the Austrian People's Party (ÖVP), has confirmed ongoing negotiations but emphasized that there are unresolved budgetary issues with the Ministry of Finance. Officials remain optimistic that an agreement will be reached at the beginning of the new year.

Meanwhile, the Ministry of Infrastructure has linked the RTI Pact with the country's broader industrial strategy, which is also still under discussion. The ministry has prepared an initiative focusing on three main pillars: supporting key technologies, continuing transformation efforts in areas such as climate, energy, and structural change, and maintaining competitive framework conditions for Austrian industry. The RTI Pact is considered essential in providing the strategic foundation for research, technology, and innovation policies. Due to the current budgetary situation, the coalition government has decided to allow additional time for internal negotiations to ensure a thorough and coordinated outcome.

The delayed conclusion of the RTI Pact underscores the complexities involved in balancing fiscal responsibility with the need for continued investment in Austria's research and innovation landscape. Stakeholders within the scientific and economic communities are closely monitoring the situation, as the outcome will significantly impact long-term planning and competitiveness in both sectors.