Austria Set for Three-Party Coalition as ÖVP and SPÖ Join Forces with Liberals

Austria’s Federal President Alexander Van der Bellen has urged political parties to seek compromise as coalition talks resume after a prolonged deadlock. Leaders from the conservative ÖVP, Social Democrats (SPÖ), and Liberals (Neos) are now exploring collaboration, positioning ÖVP chairman Christian Stocker as a potential Federal Chancellor. This coalition aims to address governance challenges while navigating ideological divides and ensuring national security, marking a significant shift in Austria’s political landscape following the September elections.

Austria’s Political Landscape Shifts as Coalition Talks Resume

On Friday afternoon, Austria’s Federal President Alexander Van der Bellen issued a pointed reminder to the political parties, urging them to prioritize compromise in their efforts to form a new government coalition. After nearly 150 days of deadlock, he expressed his disappointment on X, emphasizing that collaboration is essential for a unified solution.

Within 24 hours of the president’s statement, leaders from the conservative ÖVP, the Social Democrats (SPÖ), and the Liberals (Neos) announced their intention to collaborate on a new government. While challenges remain, ÖVP chairman Christian Stocker indicated there is now a “common basis” for cooperation, positioning him as a likely candidate for the next Federal Chancellor.

A New Chapter in Government Negotiations

This recent development marks a significant turn in the ongoing struggle to establish a government. Following the September 29 election, the three parties had previously attempted to negotiate together, largely due to reluctance to partner with the election winner, Herbert Kickl’s FPÖ. However, discussions collapsed on January 3 when Neos withdrew, citing insufficient reform interest from the ÖVP and SPÖ, leading to the cessation of talks between the two traditional parties that had previously formed a grand coalition.

After former Chancellor Karl Nehammer stepped down from party leadership, the ÖVP briefly explored an alliance with the FPÖ to address state budget consolidation, but those negotiations faltered due to significant ideological divides, particularly regarding the Interior Ministry’s appointment.

In this renewed effort, hopes are high that the disputes that marred the initial negotiations can be overcome. A key factor influencing this change is the emergence of reform plans from the FPÖ, which have raised concerns among the other parties about the potential threats to liberal democracy. Neos leader Beate Meinl-Reisinger highlighted the altered geopolitical landscape in a joint statement, stressing the collective responsibility to ensure national security.

For the first time in the history of the Second Republic, Austria has endured such a lengthy period without a fully functioning government, with the current administration only serving in a caretaker role since October. The country is now on the brink of establishing its first three-party coalition, often referred to as the “Zuckerlkoalition” due to its colorful party composition, or simply the “Ömpel,” reminiscent of a traffic light. The ability of this coalition to implement essential reforms remains uncertain, especially as strict austerity measures must be adopted to avoid EU deficit procedures.

Fortunately for the coalition, they possess a clear parliamentary majority, prompting the ÖVP and SPÖ to include Neos in their discussions. The previous grand coalition would have only secured the narrowest of majorities, which proved insufficient for effective governance.

Conversely, all parties, excluding the FPÖ, are keen to avoid new elections, which likely wouldn’t resolve the current impasse. While the right-wing populists could potentially gain from a new election, Kickl’s path to a parliamentary majority seems reliant on cooperation with the ÖVP—an unlikely scenario given recent events. The FPÖ has since labeled the new coalition discussions as a “loser traffic light” engaged in what they term “the greatest voter fraud in recent political history.”

The timeline for establishing the new government remains uncertain, with plans to develop a program in the coming days to present to party bodies next weekend. Neos is also required to conduct a member survey, with voting slated for March 2. Consequently, a formal swearing-in could occur as early as the following week, marking a pivotal moment for Austria’s political future.

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