The Austrian Chancellor has vowed to resign after coalition talks have collapsed for a second time.
Karl Nehammer said about the talks between his conservative People’s Party and the Social Democrats: ‘We have tried everything up to this point.’
‘An agreement on key points is not possible, so it makes no sense for a positive future for Austria,’ Nehammer was quoted as saying by Austrian broadcaster ORF.
Nehammer’s announcement that he would resign came a day after the liberal NEOS party’s surprise withdrawal from discussions.
In a statement on social media Nehammer said: ‘Unfortunately I have to tell you today that the negotiations have ended and will not be continued by the People’s Party.’
He said that ‘destructive forces’ in the Social Democratic Party have ‘gained the upper hand’ and that the People’s Party will not sign up to a programme that is against economic competitiveness.
Social democratic leader Andreas Babler said he regretted the decision by the People’s Party to end the negotiations. ‘This is not a good decision for our country,’ he said.
Mr Babler said that one of the main stumbling blocks had to do with how to repair the ‘record deficit’ left by the previous government.
Karl Nehammer (pictured) said about the talks between his conservative People’s Party and the Social Democrats: ‘We have tried everything up to this point’
Austrian Chancellor and head of the People’s Party (OeVP) Karl Nehammer and the chairman of Social Democrats Andreas Babler and Head of NEOS party Beate Meinl-Reisinger give a press statement after coalition talks in Vienna, Austria, December 17, 2024
‘I have offered to Karl Nehammer and the People’s Party to continue negotiating,’ he told reporters Saturday.
The next government in Austria faces the challenge of having to save between 18 and 24 billion euros (£15 billion and £20 billion), according to the EU Commission.
In addition, Austria has been in a recession for the past two years, is experiencing rising unemployment and its budget deficit is currently at 3.7 per cent of GDP – above the EU’s limit of 3 per cent.
The talks had dragged on since Austria’s president tasked the conservative chancellor in October with putting together a new government.
The request came after all other parties refused to work with the leader of the far-right Freedom Party, which in September won a national election for the first time with 29.2 per cent of the vote.