Investing.com – The liberal Neues Party, one of three parties involved in discussions to form Austria's next government, abruptly exited negotiations on Friday. The unexpected move has thrown efforts to form a centrist ruling coalition, excluding the far-right Freedom Party, into disarray.
The exit of Neus created uncertainty about the future of coalition talks and gave a boost to the Freedom Party, a Eurosceptic party with ties to Russia. The Freedom Party criticized these negotiations, as it was excluded from them despite obtaining 29% of the votes in the last parliamentary elections last September.
Although the Freedom Party required a coalition partner to govern, and none was available, support for the party has increased since its marginalization. This has escalated pressure on the two parties remaining in the talks – the People's Party led by conservative Chancellor Karl Nehammer and the Social Democrats – to find a solution.
Neuss leader, Beth Meinel Reisinger, announced the party's withdrawal from the negotiations at a press conference. The other parties were accused of not having the courage to make bold decisions, including at their last meeting, which extended until Thursday night.
Neus supports tax cuts and structural reforms, including controversial ideas such as increasing the retirement age. The party, which has never been part of the national government, presents itself as modern in contrast to the traditional power parties, the Socialist Workers' Party and the Vice-President's Party.
The Neus Party's exit highlights the increasing difficulty facing forming stable governments in European countries such as Germany and France. The far right has gained traction in these countries, but many parties are reluctant to form alliances with it.
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