Austrian Chancellor Karl Nehammer announced his resignation after failing to form a centrist coalition government, excluding the far-right party.
Consequently, Austria now faces the possibility of fresh elections following the collapse of negotiations with the anti-immigration Freedom Party (FPÖ).
Nehammer, who had served as chancellor since 2021, sought to create a coalition with the Social Democrats and liberal Neos party.
However, the Neos party abruptly withdrew from negotiations, prompting Nehammer to abandon efforts to form a government altogether.
In a video statement on social media, he expressed disappointment, stating that the People’s Party would no longer pursue negotiations.
Nehammer attributed the breakdown to “destructive forces” within the Social Democratic Party, which he claimed gained the upper hand during talks.
Social Democratic leader Andreas Babler expressed regret over the ÖVP’s decision, emphasizing that his party was willing to compromise.
This political uncertainty deepens as Austria’s economy risks shrinking for a third consecutive year, necessitating significant budget cuts.
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While fresh elections may occur, they could further bolster the Freedom Party, which has gained support since its strong September performance.
The ÖVP must also seek a new leader, with officials expected to convene on Sunday to discuss the leadership process.
Political analysts speculate that former Chancellor Sebastian Kurz might attempt a comeback, raising concerns about the future direction of the party.
Babler warned of potential dangers if the ÖVP aligns with the far-right, cautioning that it could threaten Austria’s democratic values significantly.
