Coalition negotiations dragged on after Austria’s main parties refused to work with Freedom Party (FPÖ) leader Herbert Kickl, who won the September election with 29.2 % of votes.
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The political crisis in Austria continues. Conservative Chancellor Karl Nehammer said he would resign in the coming days after negotiations to form a new government failed for the second time.
The announcement came after the People’s Party (ÖVP) and the Social Democrats (SPÖ) continued coalition talks, a day after the surprise withdrawal of the liberal Neos party from the talks.
Neos, Austrian Chancellor Karl Nehammer’s (conservative) Austrian People’s Party and the center-left Social Democrats attempted to form a three-party ruling coalition after the far-right Freedom Party (right) won elections nationals last September.
“Unfortunately, I have to tell you today that the negotiations have ended and will not be continued by the People’s Party”Mr. Nehammer said in a message published on X.
“We have tried everything so far. An agreement on the essential points is not possible, which makes no sense for Austria’s positive future.”
Mr. Nehammer stated that the “destructive forces” within the social democrats had “took the upper hand” and that the People’s Party would not sign a program that opposes economic competitiveness or the introduction of new taxes.
Social Democratic Party leader Andreas Babler said he regretted the People’s Party’s decision to end negotiations.
“This is not a good decision for our country”he declared.
Andreas Babler said one of the main stumbling blocks was how to repair the “record deficit” left by the previous government.
“I proposed to Karl Nehammer and the People’s Party to continue the negotiations and I asked them not to give up”he told reporters.
Beate Meinl-Reisinger, leader of the Neos party, said progress was impossible and that “fundamental reforms” had not been the subject of an agreement. She informed other party leaders that Neos members “will not pursue” the negotiations.
Discussions dragged on after all other parties refused to work with Freedom Party (FPÖ) leader Herbert Kickl, who came first in the September elections with 29.2% of the vote, forcing the ÖVP and SPÖ to try to recruit a smaller party to strengthen their majority.
In a statement, Herbert Kickl complained that the three main party leaders had wasted months putting together their “Kickl prevention strategy”.
“Instead of quickly forming a government, we wasted three months. Instead of stability, we have chaos”he declared.
The challenges ahead
New elections will probably be the next step, something the right-wing FPÖ party immediately welcomed as opinion polls indicate its support has increased since the election.
ADVERTISEMENTIn a survey commissioned by the newspaper Der Standard, the FPÖ increased its support to 35% of the vote according to potential voters in December.
But whoever the next Austrian government is, it will have to meet the challenge of saving between 18 and 24 billion eurosaccording to the European Commission.
Furthermore, Austria has been in recession for two years, experiencing rising unemployment and its budget deficit currently stands at 3.7% of GDP, which is above the 3% limit set by the EU.
