Austria: Liberal Neos collapse coalition talks

In Austria, the attempt to form a three-party coalition failed. The liberal Neos announced this morning that they were withdrawing from weeks of coalition talks with the conservative ÖVP and the social democratic SPÖ.

It has been noticeable, especially in the last few days, that despite many impulses from the Liberals, the urgently needed will to reform is not emerging, said Neos boss Beate Meinl-Reisinger. Instead of a big, common vision for the country, there was more of a thinking only until the next election date.

The ÖVP, SPÖ and the Neos had been negotiating a government alliance since mid-November. Such a coalition of three parties would have been a first in Austria. The talks were also an attempt to keep the clear election winner, the right-wing FPÖ, away from power. The ÖVP and SPÖ also have a majority, but only one vote.

At the end of September, the right-wing FPÖ won the parliamentary elections. However, since no one wanted to work with the party, a so-called “candy coalition” was negotiated. This candy name comes from the party colors turquoise (ÖVP), red (SPÖ) and pink (Neos).

The crux of the negotiations was always the planning of a new budget. Austria is in an economic crisis and at the same time has to make strict austerity measures in order to meet the EU criteria for financial stability. The balance between austerity and measures that stimulate the economy is considered the main task of a new government.

From the ÖVP’s perspective, the SPÖ has the main responsibility for development. “The behavior of parts of the SPÖ has led to the current situation. While parts of the Social Democrats have contributed constructively, the backward-looking forces in the SPÖ have taken over in the last few days,” wrote ÖVP General Secretary Christian Stocker.

What happens next is unclear. ÖVP and SPÖ could rely on their majority of just one vote – or there will be a new election. The right-wing populists could hope for a brilliant victory. The latest surveys signaled another big increase in votes compared to the National Council election. After that, the FPÖ could expect up to 40 percent.