Austrian Chancellor Karl Nehammer resigns as coalition talks for a new government fail for the second time. The People’s Party and the Social Democrats ended negotiations following the withdrawal of the liberal Neos party. Nehammer cited disagreements on economic policies and the Social Democratic Party's approach to the budget deficit as reasons for the collapse.
Austrian Chancellor Karl Nehammer announced his resignation in the coming days after coalition talks for a new government failed for the second time. The talks between the People’s Party and the Social Democrats ended following the liberal Neos party’s withdrawal. Nehammer stated that “destructive forces” within the Social Democratic Party had prevailed, making it impossible for the People’s Party to agree to a program that jeopardized economic competitiveness.
Social democratic leader Andreas Babler expressed regret over the decision, calling it detrimental to the country. He highlighted the disagreement on addressing the “record deficit” left by the previous government as a key obstacle. Babler urged Nehammer to continue negotiations. Austria’s next government faces significant challenges, including saving between 18 to 24 billion euros, dealing with a two-year recession, rising unemployment, and a budget deficit exceeding the EU’s limit. The talks had been ongoing since October when the Austrian president tasked Nehammer with forming a new government after other parties declined to collaborate with the leader of the far-right Freedom Party, which had won the September national election
AUSTRIA POLITICS GOVERNMENT COALITION RESIGNATION
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