Austrian Chancellor Nehammer quits as coalition talks fail

Marton Eder, Bloomberg News on Jan 4, 2025

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Austria’s Chancellor Karl Nehammer said he’ll step down as head of government and chairman of the conservative People’s Party after failing to form a new coalition following September elections.

The move raises the chances of repeat elections, while the conservatives could also appoint a leader who, unlike Nehammer, is willing to form a government with the far-right Freedom Party, which won the most seats at the September ballot.

Johanna Mikl-Leitner, the provincial leader of Lower Austria and a conservative power broker, said the party’s leadership will meet on Sunday and discuss the next steps. Snap elections would require backing from a majority in the parliament’s lower house.

Potential candidates for the conservative leadership include Karoline Edtstadler, a former minister for constitution, as well as ex-Chancellor Sebastian Kurz, who could stage a comeback after resigning in 2021 due to a corruption probe, the Kurier newspaper said, citing party sources it didn’t name.

Nehammer’s announcement ends three months of efforts to form a centrist coalition. Talks had narrowed down to the conservatives and the Social Democrats on Saturday after the liberal NEOS abandoned negotiations earlier in the week. Nehammer subsequently said on Saturday he’s also ending talks with the Socialists.

“An agreement has not been possible on significant core issues,” Nehammer said in a statement on X. “I will step down as chancellor as well as leader of the People’s Party in the following days, and facilitate an orderly handover.”

Freedom Party leader Herbert Kickl stands to capitalize the most from the political turmoil that’s hitting Austria at a difficult time, with large swathes of its economy facing headwinds and its budget in need of consolidation.

Kickl led the far-right group to its first ever election victory in September, securing 28.8% support. But his policy initiatives had proven too toxic for the other parties, including opposing support for Ukraine, criticizing coronavirus policies and pushing for mass deportation of immigrants.

In a statement on Saturday, Kickl said the People’s Party’s next steps will be a litmus test for whether it “has at least begun to understand the will of voters.”

While the Freedom Party has been part of the Austrian political establishment for more than half a decade, a government led by the party would be a first for the country and comes amid a surge in radical far-right groups across Europe.

Talks to form a centrist coalition had been initiated by President Alexander Van der Bellen, who had ignored the tradition of requesting the party leader with the largest caucus to start negotiations to form a government. With other parties rejecting a coalition with Kickl, Van der Bellen gave the mandate to Nehammer.

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(With assistance from Jonathan Tirone.)