Chancellor to resign after coalition talks fail – DW – 01/04/2025
Austrian Chancellor Karl Nehammer has announced he will stand down at the head of his conservative Austrian People’s Party (OVP) after coalition talks with the Social Democrats (SPÖ) failed.
“I will stand down as chancellor and leader of the People’s Party in the coming days and enable an orderly transition,” Nehmer said in a video statement on social media.
The conservative ÖVP and the center-left SPK were engaged in talks with the aim of forming a coalition government without the far-right Freedom Party (FPÖ).
The liberal NEOS party had already withdrawn from the talks on Friday.
“We have talked long and hard [but] “A compromise with the SpO on key points is not possible,” said Nehmer, who becomes chancellor in December 2021.
“The People’s Party stands by its promises: we will not agree to economically harmful, anti-growth policies or new taxes,” he stressed, accusing the Social Democrats of being too radical.
He claimed, “It is clear that destructive forces within the SPO have gained the upper hand.” “It is my deep belief that radicals do not offer solutions to any problem. Therefore we will not continue talks with the SPO.”
SPO boss Adrias Bübler accused the ÖVP of playing tactical political games.
“We know what the risks are going to be now,” Bubbler said. ,“An FPÖ-OVP government with a right-wing extremist chancellor that will put our democracy at risk on many points.”
Austria: what’s next?
The far-right FPÖ, a party of pro-Russian Eurosceptics, emerged from parliamentary elections in September as the largest party with 29%. But he is unable to form the government as no other party will form an alliance with him.
However, following Nehmer’s resignation, the neoliberal pro-business wing of the ÖVP may consider a coalition with the FPÖ. But a lot will depend on who the party chooses as its new leader.
New elections are another possibility, but the FPÖ could extend its lead even further after the breakup of what the far-right party calls a “coalition of losers.”
Whichever party leads the next Austrian government will face a number of challenges, including an economy in recession, rising unemployment and a budget deficit of 3.7% of GDP – above the EU limit of 3%.
The EU Commission said Vienna would have to save between €18 billion and €24 billion ($18.56 billion to $24.75 billion).
mf/sms (dpa, AP, Reuters)
