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Austrian Chancellor Karl Nehammer has announced his resignation after months-long efforts to build a centrist coalition excluding the far right failed.
The country faces the possibility of fresh elections after failing to form a government without the anti-immigration, pro-Russian Freedom Party (FPÖ), which historically came first in September’s national vote.
Nehammer also announced that he would resign as leader of the moderate conservative party (ÖVP), tasked by the country’s president with finding a coalition government after all other parties in parliament ruled out working with Herbert, the hardline leader of the liberal party.
The 52-year-old, who has been chancellor since the ouster of his predecessor Sebastian Kurz in 2021 amid a corruption investigation, has been seeking a deal with the Social Democrats and the small liberal New Os party.
But Nios abruptly withdrew from negotiations on Friday, and Nehammer announced on Saturday that he was abandoning efforts to form a government.
“Unfortunately, I have to tell you today that the negotiations are over and the People’s Party will not continue,” he said in a video statement on social media platform X.
“I will resign as prime minister and leader of the People’s Party in the coming days and effect an orderly transition.”
Nehammer said “destructive forces” within the Social Democrats had “taken the upper hand” in the negotiations and the party was unwilling to sign off on its proposed economic plan.
Social Democratic leader Andreas Babler said he regretted the ÖVP’s decision to end negotiations, adding that his party had always been willing to make compromises. “This is not a good decision for our country,” he said.
The failure of the talks has heightened political uncertainty in Austria, which risks a third straight year of contraction in 2025.
One possibility is to hold new elections, but that could risk further support for the Liberals, with polls showing the far-right party has won 29 per cent support since the September vote.
The ÖVP must also begin a search for a new leader, a process officials are expected to meet on Sunday to discuss.
Austrian political analysts were already speculating on Saturday that Kurz might seek to regain the leadership of Austria’s vice-president after the former chancellor’s biographer hinted at a close relationship with him in an article in Germany’s Bild newspaper are weighing the possibility of a political comeback.
While Nehammer has long ruled out working with far-right leader Kickel, who has pushed the Liberal party further to the right since taking the helm in 2021, Babler warned that his successor as a Conservative Leaders may be willing to work with him.
“We know what is likely to happen now. An FPÖ-ÖVP government with a right-wing extremist prime minister will endanger our democracy in many ways.
Additional reporting by Sam Jones
