Austrian Chancellor Karl Nehammer has announced his resignation following the collapse of coalition talks between the conservative ÖVP and the social democratic SPÖ. The negotiations aimed at forming a center-right government or a traffic light coalition broke down due to disagreements over fiscal policies, particularly the SPÖ's proposal to address the budget deficit by taxing wealthier citizens, a move staunchly opposed by the ÖVP.
The slim parliamentary majority that a potential ÖVP-SPÖ coalition would have held further complicated the negotiations. This political impasse has opened the door for the right-wing populist FPÖ, which stands to gain significantly in the event of snap elections, with polls suggesting an increase from 29% to roughly 35% in voter support.
Nehammer's resignation also signals an end to an attempt to exclude the FPÖ from government, as internal pressures within the ÖVP suggest a shift towards considering a coalition with the FPÖ, despite Nehammer's previous refusal to partner with the party due to its controversial stances.
With Nehammer stepping down, speculation is rife about his successor, with possible candidates including former Chancellor Sebastian Kurz and EU Minister Karoline Edtstadler. The political landscape in Austria remains uncertain, with potential new elections on the horizon and the FPÖ positioned as a formidable force. The ongoing economic challenges, including a recession and a significant budget deficit, further complicate the situation, adding urgency to resolving the leadership vacuum and forming a stable government.
