Austrian Chancellor Karl Nehammer announced his resignation following unsuccessful coalition negotiations. The right-wing Freedom Party (FPÖ) emerged victorious in the parliamentary elections, yet President Van der Bellen denied them a mandate to form a government due to other parties' reluctance to collaborate. Coalition talks between the Austrian People's Party (ÖVP) and the Social Democrats (SPÖ) collapsed over disagreements on budget deficits and tax policies. This political impasse has led to discussions about potential new elections, with polls predicting further gains for the FPÖ.
Nehammer's decision to step down reflects deep-rooted political challenges, including an €18-24 billion deficit, recession, and rising unemployment. The influential business wing of the ÖVP hinted at possible cooperation with the FPÖ, which would see the ÖVP as a junior partner. Meanwhile, FPÖ leader Herbert Kickl criticized the so-called 'Kickl prevention strategy' by Nehammer and others as a failure. As Austria grapples with these issues, the search for a new ÖVP leader begins, with former Chancellor Sebastian Kurz and EU Minister Karoline Edtstadler among the potential candidates.
