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Politics
05 January 2025

Austrian Chancellor Nehammer Resigns After Coalition Talks Fail

Following the breakdown of negotiations, uncertainty looms over Austria's political future as new elections become likely.

Austrian Chancellor Karl Nehammer has announced he will resign after coalition talks aimed at forming a government without the far-right Freedom Party (FPÖ) collapsed. This decision came on Saturday, just one day after the liberal Neos party withdrew from negotiations with Nehammer's conservative People’s Party (ÖVP) and the Social Democrats (SPÖ).

"After the breakoff of the coalition talks I am going to do the following: I will step down both as chancellor and party chairman of the People’s Party in the coming days," Nehammer stated via social media. He characterized the negotiations as "long and honest," yet saw them lead to disappointment, particularly as the parties shared a concern over the growing influence of the FPÖ.

Nehammer emphasized his party's unwillingness to support measures he believed could damage the economy or introduce new taxes. His criticism extended to those on the far-right, whom he accused of failing to offer constructive solutions to societal issues. "We will only enable an orderly transition," he remarked, denouncing the radicals within the political spectrum.

The FPÖ's electoral victory marked historical significance, as the party won nearly 30 percent of the vote during the parliamentary elections held late September. This win, compelling enough for President Alexander Van der Bellen to charge Nehammer with the task of forming a coalition, put other parties at odds with the eurosceptic and Russia-friendly faction, led by Herbert Kickl. Their decisive performance reshaped Austria's political scene.

Nehammer's frustrations grew after failing to reach consensus with the Neos party, whose leader, Beate Meinl-Reisinger, expressed skepticism about the potential for agreement. She noted, "Progress was impossible...fundamental reforms had not been agreed upon," which added to the mounting troubles of establishing a viable coalition.

The conclusion of these negotiations leaves Austria's political future clouded with uncertainty. Following Nehammer’s announcement, the ÖVP is set for discussions to elect his successor, though the potential for swift establishment of a stable government remains bleak due to persistent disagreements among political factions.

Political analysts speculate on the next steps, which may involve the president appointing another leader and setting up an interim government as the parties navigate out of this impasse. Presently, the Austrian government faces a pressing need to address economic challenges. The country requires savings of between 18 to 24 billion euros ($18.5-24.7 billion), as noted by the European Commission, amid rising unemployment and stagnation.

Adding fuel to the political fire, the FPÖ wasted no time seizing the moment, with public opinion polls indicating their popularity has surged, topping off at 35% of prospective voters according to recent surveys. They appear poised to benefit from any fresh elections amid the growing dissatisfaction with the current political framework.

With Nehammer's resignation, Austria stands at a crossroads, grappling with economic pressures and political fragmentation, as new elections loom on the horizon. The outgoing chancellor's departure may change the dynamics of the political chessboard but the questions about future governance intensity remain—how will the parties respond, and who will navigate the electorate through these turbulent times?