Today : Feb 27, 2025
Politics
27 February 2025

Austria Forms Historic Three-Party Coalition Government

Conservative, social democratic, and liberal parties unite to address economic challenges and political stability.

Austria is on the brink of making history with the announcement of its first three-party coalition formed by the Conservative People's Party (ÖVP), the Social Democratic Party (SPÖ), and the liberal Neos. This groundbreaking agreement was shared on February 27, 2025, marking the end of 150 days without a government, the longest period Austria has ever endured without political leadership since World War II.

The coalition is set to be led by ÖVP leader Christian Stocker as Chancellor, with SPÖ leader Andreas Babler stepping in as Vice Chancellor. Joining forces, these parties are working under the banner of their joint program titled "Now Do The Right Thing. For Austria," promising to take significant strides to address pressing issues such as the national budget deficit and immigration reform.

The negotiations have been intense, requiring round-the-clock efforts, as indicated by coalition representatives: "We have worked around the clock on a joint program." Despite this announcement, some hurdles remain. Party leaders noted the coalition is not finalized yet. The Neos are set to have their members vote on the agreement this Sunday, ensuring party approval before the finalization.

This agreement follows the significant political struggle Austria faced after the September 2024 elections, where the far-right FPÖ emerged with the most votes, securing just under 29 percent. A previous coalition attempt with the FPÖ was dismissed by ÖVP's former leader Karl Nehammer, leading to SPÖ and Neos negotiations. Those talks, which started off on hopeful terms, collapsed abruptly last January, leading to considerable political uncertainty.

Austria's President, Alexander Van der Bellen, intervened during this extended political impasse, urging political consensus among the parties amid rising economic concerns and calls for stability. His appeal for collaboration seemed to resonate, as the ÖVP and SPÖ resumed negotiations, eventually inviting the Neos back to the table.

The proposed government program outlines several ambitious measures intended to address Austria's pressing issues. Among these planned policies are significant budgetary reforms to combat the existing federal deficit, which currently exceeds six billion euros. The coalition aims for austerity measures over the next seven years to prevent the EU from launching penalty procedures against Austria due to its financial situation.

Immigration policies have been another focus, with initial reports indicating the intention to halt family reunification for asylum seekers. This measure reflects ÖVP's stance on tightening immigration laws. The new coalition members are also inclined to introduce provisions including housing rights reform led by the SPÖ and educational initiatives like banning cell phones in schools.

On the structural side, the government is expected to comprise six ministries from both the ÖVP and SPÖ, along with two from Neos. This structure aims at maintaining previously held positions from the former coalition with the Greens, ensuring continuity for some portfolios like defense and internal affairs.

This coalition formation has already sparked discussions across Austria, especially within the partner parties. There has been speculation of intraparty power struggles, particularly within the SPÖ, where varying leadership ambitions seem to dictate the selections for key ministerial roles.

Political analysts are closely following developments, noting, "This situation is unprecedented; Austria has never waited so long for a new government since WWII." The dynamics within the Neos party present another layer of complexity, as their members must achieve a two-thirds majority to endorse the coalition agreement, which hasn't been guaranteed yet.

Given the deep-rooted challenges faced and the tumultuous background leading to this coalition agreement, many Austrians are left wondering whether this new government will yield the stability and decisive governance needed to navigate the current economic climate and restore public trust.