Austrian Chancellor Karl Nehammer announced on Saturday that he will step down as chancellor and leader of the conservative People’s Party in the coming days after failing to form a new government. The announcement came after coalition talks between the People’s Party and the Social Democrats ended without an agreement, a day after the liberal Neos party withdrew from negotiations. “Destructive forces in the Social Democratic Party have gained the upper hand,” Nehammer stated on social media, adding that his party would not support a program that undermines economic competitiveness. Social Democratic leader Andreas Babler expressed regret over the breakdown of negotiations, saying it was a missed opportunity for Austria. Babler emphasised the need for urgent economic reforms, including addressing a budget deficit of 3.7% of GDP, which exceeds the EU’s limit of 3%. The coalition talks began in October after Austria’s president asked Nehammer to form a government. This followed the far-right Freedom Party’s September electoral victory with 29.2% of the vote, making it the largest party but leaving others unwilling to form a coalition with it. Austria has been in a recession for two years, with rising unemployment and a need to save €18–24 billion, according to the EU Commission. Nehammer’s resignation marks the end of months of political deadlock in Austria. (With inputs from Reuters, AP)
