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Austrian Chancellor Karl Nehammer announced his resignation after months of efforts to forge a centrist coalition excluding the far right failed.
The country faces the possibility of new elections after the failure to form a government without the anti-immigration, pro-Russian Freedom Party (FPÖ) achieved a historic result. first place in a national vote in September.
Nehammer, who also announced he would resign as leader of the moderate conservative People’s Party (ÖVP), had been instructed by the country’s president to seek to form a coalition after all other parties in parliament ruled out working with the hard-line leader of the FPÖ, Herbert. Kickl.
The 52-year-old, who has been chancellor since 2021, when his predecessor Sébastien Kurz had resigned amid a corruption investigation and sought to strike a deal with the Social Democrats and the small liberal Neos party.
But on Friday, Neos abruptly withdrew from the negotiations and on Saturday, Nehammer announced that he was giving up on forming a government.
“Unfortunately, I have to tell you today that the negotiations have ended and the People’s Party will not continue them,” he said in a video statement on the X social media platform.
“I will step down as chancellor and leader of the People’s Party in the coming days and allow for an orderly transition.”
Nehammer said that “destructive forces” within the Social Democratic Party had “gained the upper hand” in the negotiations and that his party was not willing to adhere to the proposed economic program.
Social Democratic leader Andreas Babler regretted the ÖVP’s decision to end negotiations, adding that his party was ready to compromise. “This is not a good decision for our country,” he said.
The failure of the negotiations increases Austria’s political uncertainty, at a time when its economy risks contracting for the third consecutive year in 2025. The country also faces the challenge of finding between 18 and 24 billion euros budget cuts, according to the figures. of the European Commission.
One possibility is new elections, but that could risk further strengthening the Freedom Party, with polls suggesting the far-right party has gained popularity since September’s vote, when it won 29 percent.
The ÖVP is also to begin searching for a new leader, with officials expected to meet on Sunday to discuss the process.
Austrian political analysts were already speculating on Saturday that Kurz would seek to take over the leadership of the ÖVP, after the former chancellor’s biographer suggested in an article published in the German newspaper Bild that those close to him were weighing the chances of a political return.
While Nehammer had always ruled out working with far-right leader Kickl, who has pushed the Freedom Party even further to the right since taking over as party leader in 2021, Babler warned of the danger that his successor at the head of the conservative party is willing to conclude an agreement with him.
“We know what threatens to happen now. An FPÖ-ÖVP government with a far-right chancellor who would put our democracy in danger on many points,” he declared.
Additional reporting by Sam Jones
