Austria’s Three-Party Coalition Talks Collapse as Neos Party Withdraws
TL/DR –
Talks to form a three-party coalition government in Austria collapsed as the smallest party, the liberal Neos party, withdrew from the negotiations. The Austrian People’s Party and the Social Democrats, who have a majority in parliament but a slim margin, had sought to include the Neos party. The Neos party leader cited a “budget hole” and lack of progress in talks as reasons for the withdrawal.
Austria’s Three-Party Government Talks Collapse
On Friday, negotiations on forming a new three-party government in Austria collapsed when the smallest prospective coalition partner withdrew from the talks. The stalled discussions began in October after conservative Chancellor Karl Nehammer was tasked by Austria’s president to form a new government following the refusal of all other parties to work with the far-right Freedom Party, a first-time national election winner.
Nehammer attempted to form a coalition of his Austrian People’s Party, the center-left Social Democrats, and the liberal Neos party. The Austrian People’s Party and the Social Democrats have previously ruled Austria together but hold a slim majority in the newly elected parliament, which prompted a move to include Neos.
The leader of Neos, Beate Meinl-Reisinger, announced on Friday that her party would not continue with the government formation talks. She expressed concerns over difficulties arising from the previous government’s “budget hole”, and the lack of progress in the talks despite a public desire for change.
The EU Commission has indicated that Austria’s next government must save between 18 to 24 billion euros. Additionally, Austria faces a struggling economy with rising unemployment and a continued recession.
Austrian People’s Party general secretary Christian Stocker attributed the talk’s collapse to “backward-looking forces” within the Social Democrats. Nehammer, expressing regret over Neos’ withdrawal, emphasized his party’s readiness to enact reforms, particularly in improving economic competitiveness and implementing a clear asylum and migration policy.
The two larger parties could potentially form a government together or court the environmentalist Greens as a prospective third partner. Meanwhile, the Freedom Party, which has seen increased support post-election, has called for Nehammer’s resignation. Despite winning the parliamentary election in September, both Nehammer and Babler have refused to engage with the far-right leader, Herbert Kickl.
Recent opinion polls show the Freedom Party’s support increasing to between 35% and 37%. Its general secretary, Michael Schnedlitz, accused Nehammer of refusing to accept his election defeat and warned against forming a three-party coalition.
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