A legislative snap election for the National Council in Austria was held on 28 September 2008. The previous election was held on 1 October 2006. The election (the 24th in Austrian history) was caused by the withdrawal of Austrian People's Party leader Wilhelm Molterer from the governing grand coalition (led by the Social Democratic Party of Austria) on 7 July 2008. Due to dissatisfaction with the grand coalition and the two main parties, it was widely expected to be a realigning election, with gains for the opposition and up to seven parties expected to be in the National Council after the election. The losses for the government parties (both the SPÖ and the ÖVP had the worst election result in history) resulted in strong gains for the far right, while neither the Liberal Forum nor the Citizens' Forum Austria (both of which were considered to have chances of gaining seats) gained as much as 2% of the vote, defying earlier expectations. The result of the election was seen as strong for the far-right and in support of Eurosceptics.
Molterer resigned as party chairman as a result of the losses suffered by the ÖVP and was replaced by environment minister Josef Pröll; the Greens' federal spokesman Alexander Van der Bellen (in office since 1997) also resigned and was replaced by his deputy, Eva Glawischnig. Due to the LIF's failure to enter parliament on its own, LIF founder Heide Schmidt and financier Hans-Peter Haselsteiner both declared their complete withdrawal from politics, and the LIF's fate was seen as uncertain. Shortly after the election, BZÖ leader and Carinthian governor Jörg Haider died in a car accident.
Inflation, rising prices, transport
Inflation was seen as a major election topic. Discussions over solutions to the problem of rising prices began back in February 2008. Gusenbauer proposed to support households with €100 as an offset to the rising prices (known as the Gusi-Hunderter); the ÖVP was against this proposal and supported the abolishment of charges instead. In the end, the coalition compromised by increasing the mileage allowance (Kilometergeld) and the commuter lump sum payment (Pendlerpauschale) and by lowering the unemployed contribution (Arbeitslosenbeiträge) for those who earn least. Furthermore, the cost of the autobahn vignette was not raised, which relieved Austrian motorists by at least €8.4 million.
The ÖVP saw the lowering of brokerage commissions and the charges for arrears letters of debt collection agencies and winter fuel payments for lower-income households as appropriate measures against inflation. The SPÖ proposed a stricter controlling of prices in addition to the reduction of brokerage commissions. FPÖ and BZÖ saw the main problem in the rising fuel prices; the FPÖ demanded a ceiling price for fuel, while the BZÖ, in addition, wanted to reduce taxes on fuels. The BZÖ announced a people's initiative (Volksbegehren) calling for a stop to rising prices (by capping the price of fuel and reducing taxes on fuel, drugs and food); however, due to the necessary timeframe, the period during which people would be able to sign for the initiative would only start after the election, thus limiting its potential impact. "Ecology against inflation" was the concept proposed by the Greens; the Greens wanted to facilitate the changeover to renewable energy in order to reduce energy prices. The Greens stated that the rising oil price, which was the main reason for the high inflation, would quickly nullify other attempts at relief (like tax reductions, winter fuel payments or a higher commuter lump sum payment). The lower inflation would also come at a high cost through a higher trade deficit. In contrast, the Greens called for a conversion of oil and gas heating to wood heatings and for a prescribed redevelopment of badly insulated residential houses to reduce energy consumption and thereby costs. On 25 August 2008, the Greens called for a strong increase in funding for public transport, for a nationwide lorry toll and for a moratorium on road construction.
Parliamentary sessions in September 2008
A special parliamentary session was to take place in mid-September 2008, shortly before a regular parliamentary session on 24 September 2008 (in order to pass laws before the election, they had to be introduced in a first session and assigned to a committee, whereupon they could then be passed in the second session). The SPÖ announced on 25 August 2008 that it would like to vote on a number of measures against the rising prices before the election, revoking the Stillhalteabkommen with the ÖVP: the halving of value added tax on food, a reduction of the payroll tax, an additional thirteenth family subsidy in October and an increase of home care subsidies. The SPÖ explained its step with the reluctance and refusal of the ÖVP to constructively negotiate on a package of measures against the rising prices. The Greens also called for a vote on abolishing university tuition fees, which the SPÖ had previously refused to do when it still considered itself bound to the Stillhalteabkommen. Faymann became more specific later on the same day, saying that the SPÖ would propose five measures against the rising prices in the session (with some of them previously coordinated with the ÖVP) in what was called a five-point plan; these included three of the above (all except the reduction of the payroll tax) an extension of the special retirement scheme for manual workers (Hacklerregelung) until 2013 and the abolishment of university tuition fees. Faymann stated he didn't expect the ÖVP to seek revenge by supporting the motion of no confidence against Darabos (see below).
Reactions of other parties were mixed: The ÖVP strongly criticised Faymann's decision to revoke the agreement and announced it would also consider outvoting the SPÖ on other issues such as security and immigration, likely with the support of FPÖ and BZÖ. The FPÖ stated it did not believe that the SPÖ would actually outvote the ÖVP before the election but indicated support for some of the measures, but later Strache said he had a number of problems with the proposals and that the FPÖ would not support them unless talks would be held over the precise wording and content of the measures; for instance, Strache called for university tuition fees to be abolished only for European Union citizens, for an end to compulsory membership in the Austrian National Union of Students (Österreichische Hochschülerinnen- und Hochschülerschaft) and for the halving of VAT on food not to apply to luxury goods like caviar, and furthermore called for a reduction of the mineral oil tax and for elimination of VAT on medication. The Greens announced they would support all five proposals except the halving of VAT on food, which they considered not to be an effective measure against the rising prices. The BZÖ was strongly against most of the proposed measures (especially the elimination of university tuition fees), but voiced support for the extension of the Hacklerregelung. The BZÖ later stated it wanted a halving of VAT on medication, as well, and wanted to be recognised as a possible coalition partner by the SPÖ. The SPÖ initially stated it refused secret negotiations with the other parties and package deals, and that whoever wanted the proposals should vote for them as proposed by the SPÖ, but later stated it was willing to sit down and talk with Strache and Haider, if necessary. In a poll from 27 August 2008, 74% of respondents in principle agreed with Faymann's proposals.
At a meeting between Faymann and Molterer on 28 August 2008, the two agreed on a common proposal regarding home care subsidies and decided to seek further talks on the family subsidy increase. They also agreed to hold consultations on the precise date of the special parliamentary session. The ÖVP stated that it would present its own proposal regarding the extension of the Hacklerregelung, however, and would not agree to the elimination of university tuition fees nor the halving of VAT on food.
Under EU rules, there can only be two reduced VAT rates from the general minimum VAT of 15% (both of which have to be above a minimum of 5%). As of 2008, there were reduced VAT rates of 12% for yard sale wine and 10% for food, rent, books, works of art and flowers; should the VAT on food be reduced to 5%, the reduced VAT on yard sale wine would either have to be abolished or reduced further to 10%, according to some; however, a reduction to 10% is impossible as the minimum VAT for yard sale wine is 12%, which is itself an exemption from the general rule banning VAT reductions for alcoholic beverages. The SPÖ argued that the reduced VAT rate for yard sale wine was a special exemption agreed upon in the Act of Accession and did therefore not qualify as the second reduced VAT rate; the ÖVP-led finance ministry claimed that this exemption had been converted into Austria's official second reduced VAT rate since the accession, and this was confirmed on 8 September 2008 by the spokeswoman of the European Commission.
Faymann announced he would be holding talks with the other parties in the week of 8–14 September 2008, but ruled out acquiescing to the FPÖ's demands regarding the abolition of university tuition fees only for Austrians or the reduction of VAT on medication. Faymann met with Strache on 8 September 2008, which the ÖVP criticised as "being the first step to an SPÖ–FPÖ coalition". On 9 September 2008, Faymann announced he was considering exempting luxury goods from the reduction of the VAT on food and also reducing the VAT on medication, in a compromise move to secure the agreement of the FPÖ and the BZÖ. The ÖVP and the Greens strongly criticised the SPÖ for this move.
The SPÖ officially brought forward the motion for the special session on 9 September 2008 and wanted the special parliamentary session to take place on 12 September 2008, while the ÖVP preferred 15 September 2008 or 7 September 2008 (the latest possible date); it was assumed at that point that the halving of VAT on food and medication would pass with the votes of the FPÖ and the BZÖ after the SPÖ's compromise on luxury goods and medication, that the increase of home care subsidies would pass with the votes of the ÖVP, the Hacklerregelung extension with the votes of the FPÖ and the BZÖ and the additional thirteenth family subsidy in October with the votes of all parties. The passage of the abolition of university tuition fees was not certain, but it was reported that the SPÖ might agree to a compromise by abolishing it only for European Union citizens and halving it for all foreigners, with exceptions for students who took too long with their studies. President of the National Council Barbara Prammer (SPÖ) on 10 September 2008 set the date of the special session for 12 September 2008 as preferred by the SPÖ and the FPÖ but against the wishes of the ÖVP, the Greens and the BZÖ, who strongly criticised Prammer's decision. On 11 September 2008, the ÖVP announced it would present its own motions in two cases instead of supporting the SPÖ's proposals, despite the ÖVP mostly agreeing in their positions; the ÖVP's extension of the Hacklerregelung foresees a longer transitional arrangement until 2023, however. The ÖVP did not explain why it wanted to introduce a motion which was nearly identical to the SPÖ's regarding the thirteenth family subsidy. The Greens stated they would introduce a number of motions, including one calling for a month of paternity leave (Papamonat) and two motions calling for same-sex marriage and civil unions (for both heterosexual and homosexual couples). The FPÖ and the BZÖ also announced the introduction of a large number of measures.
At the special parliamentary session on 12 September 2008, twenty-six motions were approved, which means they were forwarded to the responsible parliamentary committee and were to be up for a vote on 24 September 2008. They included: