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Austrian Chancellor Karl Nehammer announced his resignation after the collapse of months-long efforts to form a centrist coalition that excluded the far right.
The country faces the prospect of new elections after failing to form a government without the anti-immigration, pro-Russian Freedom Party, which achieved a historic victory. Finishing first place In a national vote in September.
Nehammer, who also announced he would step down as leader of the moderate conservative People's Party (ÖVP), had been tasked by the country's president with seeking to form a coalition after all other parties in parliament ruled out working with hardline FPÖ leader Herbert. Kickle.
The 52-year-old, who has served as chancellor since 2021 when he was his predecessor Sebastian Short He had resigned amid a corruption investigation, and sought to reach an agreement with the Social Democratic Party and the small liberal Neus party.
But on Friday, Neuss abruptly withdrew from the talks, and Nehammer announced on Saturday that he was abandoning efforts to form a government.
“Unfortunately, I must 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 social media platform X.
He added: “I will step down from my position as advisor and leader of the People's Party in the coming days and I will be able to achieve an orderly transition.”
Nehammer said that “destructive forces” in the SPD had “gained the upper hand” in the negotiations and that his party was not willing to sign his proposed economic programme.
Social Democrats leader Andreas Babler said he regretted the Austrian People's Party's decision to end the talks, adding that his party was willing to compromise. “This is not a good decision for our country,” he added.
The failure of the negotiations deepens political uncertainty in Austria at a time when its economy risks contracting for the third year in a row in 2025. The country also faces the challenge of finding budget cuts ranging between 18 billion euros and 24 billion euros, according to the figures. From the European Union Commission.
One possibility is to hold new elections, but that could further strengthen the Freedom Party, with opinion polls suggesting the far-right party has gained support since the vote in September, when it won 29 percent.
The ÖVP must also begin a search for a new leader, and officials are expected to meet on Sunday to discuss the process.
Austrian political analysts were already speculating on Saturday that Kurz might seek to regain leadership of the Austrian People's Party, after the former chancellor's biographer hinted in an article in the German newspaper Bild that people close to him were examining the chances of a political comeback.
While Nehammer has always ruled out working with far-right leader Kickl, who has pushed the Freedom Party further to the right since taking power in 2021, Babler warned of the risk that his successor as leader of the conservative party would be willing to make a deal with him.
“We know what threatens to happen now. An FPÖ-ÖVP government with a far-right chancellor will endanger our democracy at many points,” he said.
Additional reporting by Sam Jones
