Austria is entering a pivotal year in 2025, marked by significant political and environmental changes.

The country is grappling with its longest recession since World War II, as coalition talks between ÖVP, SPÖ, and Neos aim to finalize a budget plan before critical EU deadlines.

This coalition, potentially Austria's first three-party government, must address EU debt criteria by mid-January to avoid sanctions.

Meanwhile, regional elections in Burgenland and Vienna could reshape local political landscapes, with the FPÖ poised for gains.

On the environmental front, Austria is launching a new deposit system for plastic bottles and cans starting January 1. Consumers will pay a 25-cent deposit, refundable upon returning the packaging.

This initiative aims to boost recycling and reduce waste, aligning with broader EU sustainability goals.

Together, these developments highlight Austria's efforts to navigate economic, political, and environmental challenges in the new year.