VIENNA — Discussions aimed at establishing a new three-party government in Austria fell apart on Friday when the smallest coalition partner withdrew from the negotiations. This setback comes after extended talks that began following President Alexander Van der Bellen’s mandate to conservative Chancellor Karl Nehammer in October to assemble a government. This action was prompted by other parties’ refusal to cooperate with the far-right Freedom Party, which made significant gains in the national elections held in September.
Nehammer has been striving to unite his Austrian People’s Party with the center-left Social Democrats and the liberal Neos party to form a stable coalition. While the Austrian People’s Party and the Social Democrats have previously governed together, their current parliamentary majority is precariously thin, holding only 92 of the total 183 seats, which is deemed insufficient. To bolster their position, a partnership with Neos was sought.
However, Neos leader Beate Meinl-Reisinger communicated early Friday her party’s decision to halt coalition talks with Nehammer and his Social Democrat counterpart, Andreas Babler. She cited a significant “budget hole” left by the preceding government as a key issue hampering progress and expressed that recent discussions seemed to be regressing rather than advancing.
The newly formed government will need to address a budgetary shortfall of between 18 to 24 billion euros, as outlined by the EU Commission. Additionally, Austria’s economy is facing challenges, including rising unemployment and a sustained recession. Meinl-Reisinger stated that there had been repeated refusals to consider crucial reforms during the week.
In response, Christian Stocker, general secretary of the Austrian People’s Party, attributed the breakdown of negotiations to what he referred to as “backward-looking forces” within the Social Democrats. Nehammer expressed regret over Neos’ decision to withdraw from coalition discussions, stressing that his party is ready to take on responsibility and pursue reforms, particularly concerning economic competitiveness and asylum policies.
At a press conference later in the day, Babler conveyed his surprise at Neos’ exit from the negotiations. He explained that discussions had continued into the late evening and, despite challenges, they had been making progress. Babler emphasized that repairing the budget deficit was a primary point of contention and affirmed that the Social Democrats were seeking a fair resolution, stating, “Our hand remains extended.” He insisted on the need for collaboration in these challenging times.
President Van der Bellen also spoke to the media, confirming that the talks aimed at forming a three-party coalition had collapsed, but the necessity for a functioning government and a coherent platform remains. He underscored that a government capable of passing necessary laws requires a majority in parliament and called for Nehammer and Babler to swiftly continue their coalition efforts.
The next steps remain uncertain. The two larger parties could explore the possibility of governing alone or consider colluding with the Green party as a potential third partner. Notably, the outgoing coalition led by Nehammer and the Greens lost their parliamentary majority in the September elections but continues to function in a caretaker capacity.
Meanwhile, the Freedom Party, which has risen in popularity since the elections, demanded Nehammer’s resignation. The far-right party secured 29.2% of the vote in September, but both Nehammer and Babler have ruled out any collaboration with its leader, Herbert Kickl. Recent polling indicates that the Freedom Party’s support has grown to between 35% and 37%. Its general secretary, Michael Schnedlitz, accused the Chancellor of failing to accept the outcome of the election and criticized the notion of a three-party coalition akin to Germany’s past government, which faced its own issues leading to instability.
