Austrian Chancellor Karl Nehammer announced his resignation following the collapse of coalition talks between the People's Party and the Social Democrats for the second time. The negotiations came to a halt after the liberal Neos party unexpectedly withdrew from discussions.
In a statement on social media, Nehammer cited the influence of 'destructive forces' within the Social Democratic Party as a reason for the breakdown in talks. He emphasized that the People's Party would not agree to a program that undermines economic competitiveness.
Social democratic leader expressed regret over the decision to end negotiations, highlighting the challenges faced by the country, including a significant budget deficit and a prolonged recession. The EU Commission estimates that the next government will need to save between 18 to 24 billion euros to address the economic situation.
The talks, which began in October when the president tasked Nehammer with forming a new government, have been marred by disagreements over fiscal policies and economic recovery strategies. The refusal of other parties to collaborate with the far-right Freedom Party, which won a significant portion of the vote in the recent national election, further complicated the formation of a coalition.
The failure of the coalition talks leaves Austria in a precarious position, with rising unemployment, a budget deficit exceeding EU limits, and the urgent need for comprehensive economic reforms. The country's political landscape remains uncertain as leaders navigate the challenges of governance in the midst of economic turmoil.
