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Austrian Chancellor Karl Nehammer has announced his resignation after months of efforts to form a centrist coalition that excludes the far-right failed.
The country is facing the possibility of new elections after failing to form a government without the anti-immigrant, pro-Russian Freedom Party (FPÖ), securing a historic victory First place in a statewide vote in September.
Nehammer, who also announced his resignation as leader of the moderate-conservative People’s Party (ÖVP), was tasked by the country’s president with forming a coalition after all other parties in parliament ruled out working with FPÖ hardliner leader Herbert Kickl.
The 52-year-old, who has held the office of Chancellor as his predecessor since 2021 Sebastian Short He resigned amid a corruption investigation and tried to strike a deal with the Social Democrats and the small, liberal Neos party.
But on Friday Neos abruptly broke off talks and on Saturday Nehammer announced he was giving up efforts to form a government.
“Unfortunately I have to inform you today that the negotiations have ended and will not be continued by the People’s Party,” he said in a video statement on the social media platform X.
“I will step down as Chancellor and as Chairman of the People’s Party in the coming days and enable an orderly transition.”
Nehammer said that “destructive forces” in the Social Democratic Party had “gained the upper hand” in the negotiations and that his party was unwilling to join the proposed economic program.
The leader of the Social Democrats, Andreas Babler, regretted the ÖVP’s decision to break off the talks and added that his party had been willing to compromise. “This is not a good decision for our country,” he said.
The failure of negotiations exacerbates Austria’s political uncertainty at a time when the economy threatens to contract for the third time in a row in 2025. According to the figures, the country also faces the challenge of achieving budget cuts of between 18 and 24 billion euros from the EU Commission.
One possibility is new elections, but that could risk further strengthening the Freedom Party. Polls suggest the far-right party has gained support since the September vote, when it won 29 percent.
The ÖVP also has to start looking for a new chairman. Officials are expected to meet on Sunday to discuss the trial.
Austrian political analysts were already speculating on Saturday that Kurz could try to regain the leadership of the ÖVP after the former chancellor’s biographer suggested in an article published in the German newspaper Bild that people close to him were weighing the chances of a political comeback.
While Nehammer had always ruled out working with the right-wing extremist party leader Kickl, who has led the Freedom Party even further to the right since taking office in 2021, Babler warned of the danger that his successor as leader of the conservative party could make a deal with complete him.
“We know what could happen now. “An FPÖ-ÖVP government with a right-wing extremist chancellor that will endanger our democracy in many respects,” he said.
Additional reporting by Sam Jones
